MASTER 
NEGATIVE 
NO.  94-82069 


COPYRIGHT  STATEMENT 


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Author: 

Marsh,  Christopher 
Columbus 

Title: 

The  science  of 
double-entry... 

Place: 

New  York 

Date: 

1854 


MASTER   NEGATIVE  • 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

BIBLIOGRAPHIC  MICROFORM  TARGET 


ORIGINAL  MATERIAL  AS  FILMED  -    EXISTING  BIBLIOGRAPHIC  RECORD 


1/^3517 


RESTRICTIONS  ON  USE: 


Marsh,  Christopher  Columbus,  h,  1806. 

The  science  of  double-entry  book-keeping,  simplified  by  Uie 
application  of  an  infallible  rule  for  journalizing  ...  By  C.  C. 
Marsh  ...  Rewritten,  enl.,  and  improved,  from  the  20th  ed., 
with  an  original  diagrttm.    New  York,  J.  C.  Riker,  1867.     1B54 

218  p.    foldi  front,  lllus.    231«". 


Ik  Bookkeeping.       i.  Title. 


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HLMED  BY  PRESERVATION  RESOURCES.  BETHLEHEM.  PA. 


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THE    SCIENCE 


OF 


DOUBLE  ENTRY  BOOKKEEPING, 


SIMPLIFIED 


BY    THE     APPLICATION     OP     AN 


\    ■ 


.s 


N        #1 


\ . 


INFALLIBLE    RULE    FOR  JOURNALIZING; 

CALCULATED  TO  INSURE  A  COMPLETE  KNOWLEDGE  OF 

THE  THEORY  AND  PRACTICE  OF  ACCOUNTS : 

BEING  A  SERIES  OF  WELI.SELECTED    MERCANTILE   TRANSACTIONS,  SO  ARRANGED 

AS  TO  FORM  A  COMPLETE  COURSE  OF  PRACTICE  AND  INSTRUCTION,  AND 

DESIGNED  FOR  THE  USE  OF  SCHOOLS  AND  COUNTING-HOUSES  IN  THE 

UNITED   STATES:   INCLUDING   NUMEROUS   EXAMPLES   OF 

MERCANTILE    CALCULATIONS. 


By  C.  C.  marsh,   Accountant, 

AUTHOR  OF  "SINGLE-ENTRY  BOOK-KEEPING  IMPROVED/'  fcc 


"6  ,  '-Ho"-'  -   ,        ■'  1 

•  •••  ■'•»«9  e 


REWRITTEN.  Ej:L.iRGED,  ANp.^Ji^dVED.  FROM  THE  TWENTIETH  EDITION 


•  «  •       *  •      4 


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•      •   »    •      ■»  •   » 


NEW  YORK: 
PUBLISHED  BY  JOHN  C 

129    FVhTOy  STREKT. 

1854. 


RIKER 


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7. 


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JPfZZ 
Af35'/7 


Montjpomery  Library 
of  AccounUw^y 


46  -  f //^r 


Entered  according  to  Act  of  Congress,  in  the  year  1850. 

Bt  C.   C.   MARSH, 

Id  the  Clerk's  OflSce  of  the  District  Court  of  the  United  States,  in  and  tor  the  Southern 

District  of  New  York. 


••     •»       •,«§ 
•  t  •  •     •   t 
•  •  •   ■  <        •     * 

•    •         «  •     •  a 


•    •    •  • 


•     * 


•      * 


•       •    • 


,•  •      •• 


8TERKOTTPED   BY   C.   C.   SAVAOE. 

13  Cbambera  Street,  N.  Y. 


I 

> 


THIS  VOLUME  IS  RESPECTFULLY 


DEDICATED 


TO  THE 


CLERKS, 

€^t  Mm  SMrrrlinnts,  nf  tijt  Mlti  Itafes, 

WHOSE  mTEORITY.  AND  ASSIDUITY  m  THE  PERFORMANCE  OF  THEIR  DUTIES 
HAVE  LONG  BEEN  WITNESSED  AND  ADMIRED 


By  THE  Author. 


\ 


PREFACE. 


The  increase  of  the  trade  and  commerce  of  the  United  States,  consequent  on 
the  increase  of  population,  manufactories,  and  agriculture,  and  the  universal 
confidence  reposed  in  our  political  institutions,  have  called  into  requisition  re- 
newed efforts  in  every  department  of  science  and  literature.  Twenty  years 
ago,  when  the  book  which  is  the  basis  of  this,  was  first  published,  works  on 
book-keeping  were  not  as  common,  nor  so  much  in  demand,  as  they  are  at 
present.  Then,  two  were  supplicating  for  public  patronage ;  now,  more  than 
a  dozen  contend  for  public  favor:  then,  book-keeping  was  little  thought  of  as  a 
branch  of  education ;  now,  great  exertions  are  made  to  render  a  practical  as  well 
as  a  theoretical  knowledge  of  the  science  attainable  by  study  and  instruction. 

There  are,  perhaps,  no  people  on  the  earth  who  have  more  necessity  for  skill 
and  method  in  arranging  accounts,  than  those  of  the  United  States.  Here  a 
most  wonderful  credit-system  prevails.  It  is  infused  throughout  all  kinds  of 
business,  from  the  largest  commercial  establishment  to  the  smallest  retail  shop 
— from  the  emporiums  of  the  cities  and  towns  to  the  remotest  trading-house 
on  the  confines  of  civilization.  All  classes  of  society,  and  people  of  all  occupa- 
tions, participate  in  it— the  farmer,  the  mechanic,  the  rich  man  and  the  poor. 
It  animates  the  adventurer,  inspires  the  enterprising,  encourages  the  industri- 
ous, and  establishes  the  emigrant  in  the  west.  It  fortifies  the  farmer  and 
planter  for  a  year's  toil,  and  transports  the  products  of  their  labor  to  a  market. 
Such  a  System  of  doing  business  is  as  much  the  offspring  of  confidence  and 
good  will  in  man  toward  his  fellow-man,  as  of  capital.  I  truly  believe  that  no 
people  buy  as  much,  consume  as  much,  and  pay  for  as  much,  as  the  people  of 
these  states.  No  one  here  thinks  of  hoarding  money,  and  few  are  satisfied  to  live 
as  they  have  lived,  or  to  go  on  as  they  began ;  but  as  soon  as  they  possess  any 
means  above  their  immediate  necessities,  everything  about  them  is  improved, 
enlarged,  and  even  beautified.  Thus  it  would  seem  that  credit  and  capital  are 
on  a  par,  equally  active  and  never  at  rest. 

Book-keeping  is  so  extensively  required,  that  it  becomes  difficult  to  say  who 
may  not  stand  in  need  of  the  knowledge  embraced  under  its  name.  No  one, 
however,  who  has  even  distant  expectations  of  being  engaged  or  interested  in 
mercantile  affairs,  manufactories,  or  in  joint-stock  companies,  ought  to  omit  to 
make  that  science  a  study.  By  this  I  do  not  mean  that  all  should  or  can  be- 
come book-keepers,  but  that  those  engaged  in  any  kind  of  business,  that  possess 
capital  or  that  control  it,  and  those  who  make  a  profession  of  the  law,  should 
make  themselves  acquainted  with  its  principles  as  a  science,  with  the  names 
and  purposes  of  the  common  account-books,  with  a  systematic  method  of  sta- 
ting accounts,  and  with  the  various  calculations  belonging  to  them.  Unless  they 
do  this,  they  can  not  read  an  account,  much  less  understand  one.  Doct.  Johnson 
says,  in  his  preface  to  Bait's  Dictionary  of  Commerce,  "  Let  no  man  enter 
into  a  large  business  while  he  is  ignorant  of  regulating  accounts ;  never  let  him 


"  PREFACE. 

imagine  that  any  degree  of  natural  abilities  will  supply  this  deficiency  or  pre- 

hat  book-keepmg  was  a  science  that  required  to  be  studied  before  it  could  be 
understood,  and  that  the  knowledge  acquired  by  such  study  would  be  of  inesti- 
mable value  to  the  man  engaged  in  business. 

sulject-that  he  thmks  belongs  to  those  who  are  more  likely  to  look  on  all 

;i.h  an  ,mpar..al  eye ;  but  he  may.  he  presumes,  without  offence  to  anyTve 

U.S  vews  on  some  of  the  different  methods  of  teaching  book-keeping.    Onf  of 

the  more  cominon  presents  the  science  to  the  student  in  such  a  form  that  he 

volume  filled  w.th  account-books  and  general  rules,  and  appears  to  take  for 
granted  that  to  see  the  entries  and  operations,  is  to  understand  them. 

Another  essays  to  teach  the  science  by  an  ingenious  way  of  ruling  the  books 
and  by  des,gnat.ng  for  what  purpose  are  the  different  columns,  ^his  pit' 
supposes  that  every  one  knows  who  are  the  debtors  and  creditors,  what  is  to 
be  charged  and  what  credited,  and  therefore  furnishes  no  instruction  in  refer- 
ence  thereto. 

Another  proposes  to  accomplish  the  object  by  teaching  a  theory  and  practice 
separately;  by  this  plan,  the  pupil  begins  the  study  at  the  Lege  and  g^ 
backward.  In  this  method,  I  think  it  is  asserted  that  you  mighfas  well  bZ 
accounts  m  the  Leger  with  the  words  •■  Red"  and  "  Black."  as  to  head  thrm 
with  those  of  Dr.  and  Or. ;  indicating  that  these  words  h^ve  no"  their  usuS 
sigmfications  when  applied  to  book-keepin". 

But  the  worst  of  all  is.  that  these  and  most  other  methods  teach  that 
7ZT      "        '"'  '."  'T  """'  """"»''•  ■"«""-?  ""a,  the  acco^« 

LI  !hU  T  """w.    T\°' ^"-     ''°*'"^'  '■"  "y  °"»<'' «""  ^  -"o-  absurd 
than  this;  for.  although  things  may  owe  us.  and  we  may  owe  them,  thel 

can  notor^e  each  other.    This  is  an  error  which  relates  directly  to  th^  thi^ 

7.\  ZZ  f^^  'y°  ,""""  ^"^"^  '"  '™''*'  "'<'  science  inaccessible. 
Such  a  method  of  teaching  leaves  the  party  most  interested  entirely  out  of 

til  tT?'  1  '  L"'*'  incomprehensible  suppositions  for  simple  reali- 
ties The  truth  IS,  not  the  accounts,  but  the  objects  which  they  reprint  are 
the  debtors;  and  not  debtors  to  each  other,  but  debtors  to  the  owner  of  Ae 
books.  I,  IS  to  this  common  error  that  may  be  attributed  the  deficiency  of 
practical  instruction  in  this  branch.  ' 

I  would  not  say  that  these  methods  are  so  bad  that  no  one  can  learn  bv  them 
but  that  It  IS  my  humble  opinion  that  the  very  faults  and  errors  to  which  I  h."; 

™  h!r*  ^T  "'!  '°r  °''''''°"  "'■'*"  "P'"^^'''  ^'^-  "•«  book-keeping 
can  not  be  learned  at  school.  •^^'^i^iujf 

.n.w"Ti°^  ^^  double-entry  is  undoubtedly  a  «:ience,  and  not  merely  . 
coUection  of  forms  and  arbitrary  rules.  Every  operation  in  it  being  susceptible 
of  rational  exposition,  there  is  no  doubt  that  it  can  be  taught  with  much  Lter 
effect  by  pursmng  a  course  more  in  accordance  with  the  modern  methods  of 
teachmg  most  branches.    Arithmetic,  for  example,  is  much  better  taught  now 


PREFACE.  , 

than  formerly,  because  it  is  taught  more  by  reasoning  and  less  by  rules.  The 
modern  method  of  teaching.  I  believe,  is  by  experiment  and  example,  rather  than 
by  rule  and  precept ;  m  it  the  practice  and  theory  are  united,  but  the  theory 
fol  ows,  not  precedes,  the  practice.  A  question  is  proposed,  the  operation  is 
performed  and  explained,  and  then  follow  the  principle  and  rule.  This  is  the 
natural  way;  and  in  this  order,  if  I  mistake  not.  have  originated  all  the  scien- 
ces-firs the  lact  was  discovered,  and  then  a  theory  was  made  to  account  for 
1 1.     Facts  originate  theory,  and  not  theory  facts. 

This  book  does  not  profess  to  be  a  new  system  of  keeping  accomits.  but  an 
improved  and  more  efficacious  way  of  teaching  the  theory  and  practice  of  the 
an.  leaching  book-keeping  does  not  consist  so  much  in  explanations  of  the 
forms  and  purposes  of  the  accomit-books.  as  in  expositions  of  mercantile  trans- 
actions. To  know  what  the  Cash-Book  is  for,  and  to  know  how  to  make  an 
entry  in  it,  are  very  different  things-quile  as  different  as  knowing  what  a  vio- 
lin IS  for,  and  knowing  how  to  play  on  one.  The  object  should  be  to  teach  the 
7r  K  "A°"  ""1^  "  ^^'  °'  '""^  "'  accomit-Wks,  variable  at  Te  wm 
iftW         '*""''         ^"^'"^  ^''^  ""  ■"""*  "'■  "^^  ^^'"'^  «°  ^  '«="<J'^ 

Journalizing  is  the  scientific  part  of  book-keeping ;  by  it  is  meant  the  cor- 
^.  determination  of  the  objects  and  persons  wWcht  in  businesHrtstion 
may  be  our  true  debtors  and  creditors.    Without  the  skill  to  determine  theL 

nl^^Ti    f  "'  '^'r''''T'  """""'^  '"  """'■'^S-     N"  -riation  in  t^; 
2^^  ,h    r  '  °'  l''  "^'"^  "'■  "^^  '«=<=°'^«-'~oks.  can  afford  any  assist- 

TXZ  \  ""  T  "*"  """  °^  ""'  '""'y-  ^'  ''  '"  '^'  P"«  of  the  science 
I  claim  to  have  made  a  great  improvement,  and  to  have  reduced  journalizing 
to  a  simple  question  of  indebtedness.  In  most  of  the  methods  used,  manv 
rules  are  given  to  teach  to  journalize,  or  to  distinguish  the  debtors  and  cred- 
itors  that  result  from  business  transactions.  But  it  is  well  known  that  these 
rules  are  all  liable  to  exceptions,  and  the  pupil  encounters  as  much  diffi- 
culty in  understanding  when  to  apply  a  rule  and  when  not,  as  he  would  were 
he  to  study  the  science  without  rules ;  that  is,  these  rules,  from  their  variety 
and  exceptions,  are  more  difficult  to  understand  and  apply  than  the  science  with 
which  Uiey  are  comiected.  In  this  work,  the  all-important  part  of  the  science 
(joumalizmg)  is  uniformly  explained  by  one  Bt;.E.  ^This  r^e  is  simpl~ 
nature,  invariable  in  its  utility,  and  in  its  truth  self-evident.  It  is  a  rule  that 
directs  the  thoughts  of  the  pupil  to  the  real  merits  of  a  transaction-brings  into 

whaTiln  ""T.  i"^'  '"^'"'^  ""'^  "^""^  ^'"^  P""'"^''^  '<^^'' »«» teaches 

what  will  avail  him  in  the  business-world.    WhUe  the  method  of  imparting  a 

knowledge  of  accounts  laid  down  in  this  work,  and  so  arranged  as  fo  fon^  a 

^n  result  in  giving  him  a  better  practical  knowledge,  it  will  also  be  found  to 
be  the  easiest  on  which  to  study  or  to  teach. 

A  method  of  teaching  any  branch  which  encumbers  it  unnecessarily  with 
rules,  pnnciples.  and  divisions,  makes  the  head  of  the  student  that  commits 
them  to  memory  a  mere  box:  while  the  more  modern  (the  inductive)  treats 
the  pupil  as  a  responsible  and  (tee  agent.    That  instruction  which  is  addressed 


8 


PREFACE. 


O 


to  and  excercises  the  rational  faculties,  will  be  of  service  even  though  it  should 
be  erroneous ;  for  the  man  that  has  been  taught  to  use  and  to  depend  on  his 
reason,  is  less  liable  to  remain  in  error  should  he  be  in  it,  and  less  to  get  in 
.when  he  is  out. 

The  forms  of  the  account-books  in  this  volume  accord  very  well  with  those 
used  in  the  United  States ;  and  I  consider  them  well  calculated  to  exemplify 
the  practice  of  the  science  on.  There  are,  it  is  true,  shorter  methods  of  keep- 
ing books,  which  are  sometimes  used  by  experienced  book-keepers ;  but  these 
short  methods  can  not  be  adopted  until  one  is  master  of  the  subject  as  a  science, 
nor  are  they  at  all  suitable  to  teach  from — for,  in  studying,  we  require  to  see 
the  art  as  a  whole,  and  not  in  an  abbreviated  form.  When  the  science  is  well 
tmderstood,  in  connection  with  a  good  system  or  set  of  forms  of  account-books, 
there  will  be  no  difficulty  in  understanding  any  variations  in  those  forms,  or 
any  other  system  of  keeping  books  by  double-entry. 

The  plan  of  the  book  is  this :  One  part  consists  of  a  set  of  account-books, 
jBUed  with  mercantile  transactions,  embracing  all  the  variety  likely  to  occur  in 
the  natural  course  of  business,  beginning  wiih  the  simplest  and  advancing  to 
the  more  complicated.  All  the  important  papers  and  calculations  required  by 
those  transactions  are  preserved  and  explained,  and  bear  corresponding  dates, 
in  the  part  of  the  book  entitled  Forms  and  Calculations. 

The  number  of  transactions  composing  the  five  months'  business  embraced  in 
the  account-books,  is  about  one  hundred  and  fifty,  which,  extending  into  all 
kinds  of  business,  are  calculated  to  anticipate  most,  if  not  all,  the  cases  likely 
to  occur,  and  to  furnish  the  pupil  with  enough  practice  in  keeping  books  to 
develop  the  tffeory  and  to  make  him  a  book-keeper. 

The  first  part  of  the  book  (about  sixty  pages)  is  to  serve  as  the  teacher.  In 
this  part,  all  the  operations,  transactions,  and  entries,  are  fully  and  minutely 
explained ;  and  all  those  explanations  bear  dates  corresponding  with  the  matter 
in  the  account-books.  These  instructions  conduct  the  student,  like  a  teacher, 
through  a  set  of  books — attending  him  while  opening,  keeping,  balancing, 
closing,  and  re-opemng  the  same,  and  in  making  his  trial-balances,  account- 
sales,  accounts-current,  balance-sheets,  &c.,  &c. 

My  first  work  on  this  subject,  written  many  years  since,  and  which  has 
passed  through  about  twenty  editions,  is  by  no  means  abrogated,  but  forms  the 
basis  of  this  publication.  It  is  rewritten,  enlarged,  and  improved,  and  em- 
braces the  result  of  the  long  experience  of  the  author  as  an  accountant  and 
teacher  of  book-keeping.  I  have  preserved  all  tne  most  appropriate  and  useful 
examples  of  business,  introduced  others,  and  omitted  those  deemed  too  com- 
plicated to  be  of  practical  utility  to  the  pupil.  I  have  also  given  more  exam- 
ples in  mercantile  arithmetic,  many  of  which  have  not  before  been  published. 
The  entries  under  date  of  May  30th  will  furnish  the  practical  book-keeper,  as 
well  as  the  student,  with  forms  for  the  making  up  of  what  are  called  monthly 
entries. 

All  of  which  is  respectfully  submitted  to  the  patronage  of  the  public  by 

NxwYouc,  THE  AUTHOR. 

Nofemb«r  1, 1850. 


CONTENTS. 


Directions  to  Teachers pack  10 

Introdaction n 

Definitions  of  Accoant-Books 12 

Note  on  the  Day-Book 72 

Note  on  the  Journal [     94 

Note  on  the  Leger no 

Note  on  the  Cash-Book 157 

Infallible  Rule  for  Journalizing 13 

Opening  Books 14 

BusiNKss  OF  Jawuary — 
Entries  relating  to— Entering  into  Part- 
nership—Advancing Capital— Assuming 
Partners'  Debts— Simple  Purchases  and 
Sales — Simple  Receipts  and  Payments 
^  — Loans — Loans  on  Notes  and  Interest 
—Receiving  and  Delivering  Notes— 

Pa^in^  our  Notes 14 

Elucidations  of  the  Journal  Entries 14-21 

Postinp— Posting  the  Entries  of  January.  22-25 

Trial  Balances— What  they  prove 26 

Trial-Balance  of  January 25 

Trial-Balance  of  February 36 

Trial  Balance  of  March 42 

Trial-Balance  of  April ,'.     47 

Business  of  Fkbkuary— 
Entries  relating  to— Paying  Notes  be- 
fore due— Petty  Expenses— Consigning 
—Shipping  for  account  of  others— Fail- 
ure and  Compromise— Importing  Goods 
—Accepting  Drafts— Drafts  or  Orders 
at  Sight— Buying  Vessels— Drawing 
Bills  of  Exchange — Bartering— Accom- 
modation Notes— Discounting  Notes— 

Insuring  Shiniuents  and  Vessels 27 

Elucidations  ot  the  Journal  Entries.... 27-35 
BusiNKss  OF  March — 
Entries  relating  to — Delivering  per  Or- 
der-Receiving Consignments — Paying 
Charges  on  Conngnments— Selling  Con- 
signments—Selling at  Auction— Collect- 
ing Notes  and  Acceptances — Receiving 
Notes  with  Interest— Allowing  for  dam- 


nges  in  Sales— Paying  Acceptances- 
Closing  Consignments— Rendering  Ac- 
count-Sales—Receiving Account-Sales 
•—Buying  in  Joint-Account— Selling  in 
Jomt  Account — Receiving  our  Note  be- 
fore due — Paying  Money  to  a  Partner- 
Baying  Bills  of  Exchange— Closing  Ac- 
count of  Sales  in  Joint-Account — Ren- 
dering Account-Sales  of  Merchandise 
»n  Joint- Account 35 

Elucidations  of  the  Journal  Entries  ...^36-42 

Bi;siNEss  OF  April— 
Entries  relating  to— Paying  Rent— Re- 
ceiving Returns— Receiving  Consign- 
ments free  of  Charges— Selling  on  Com- 
mission—Renewing Notes— Allowing 
to  ourselves  for  damages— Shipping  on 
our  Account  —  Closing  Consignment- 
Buying  in  Joint  Account— Exchanging 
nncnrrent  Money— Rene wmg  our  Notes 
—Transferring  Purchase  at  Auction- 
Drawing  Prize— Receiving  Account- 
Sales  with  Returns— Taking  a  Consign- 
ment to  our  account— Receiving  Freights 
of  our  Vessel— Drafts  remitted  us  for 
Collection— Buying  Drafts  per  Order 


and  for  Remittance— Investing  Funds  in 
Drafts— Baying  Specie— Allowing  In- 
terest on  Partner's  Capital— Rendering 
Accounts-Current— Closing  Accounts- 
Correcting  Errors,  &c.,  kc 43 

Elucidations  of  the  Journal  Entries 43-47 

Balance-Sheets 43 

Balance-Sheet  of  April  30,  isho'.'.'.'.'.'.'.'.'.     49 

Explanation  of  the  Balance-Sheet 52 

Closing  a  Balance-Sheet 55 

Closing  tl>e  Books ,'/,]     55 

Explanations  of  the  closing  Entries  .....     55 

Opening  Books sg 

BiTsiNKSs  OF  May — 
Relating  to— Clerks'  Salaries— Deliver- 
ing Note  for  Debt  due— Investing  Money 
in  Stocks — Receiving  Account-Sales — 
Receiving  Account-Current  with  balance 
of  Interest— Receiving  Draft  for  balance 
of  Account— Delivering  Note  on  Open 
Policy— Shipments  in  Joint-Account— 
Montlily  Entry  of  Purchases— Monthly 
Entry  of  Salen— Monthly  Entry  of  Cash 
received— Monthly  Entry  of  Cash  paid 

— Correcting  Errors 57 

Elucidations  of  the  Journal  Entries .57-59 

Explanations  of  the  Monthly  Entries 58 

Correcting  Errors 47 

200  duEsTioNs  AN D  ANSWERS,  relating  u>— 

Opening  Books 60,61 

Conducting  B  ^oks 62-68 

Closing  Books 68-70 

Day-Book  — containing    150    Business 

Transactions 7^ 

Journal — CMitaiiiing  120  Entries 93 

Leger — containing  40  Accounts 109 

Cash-Book — containing  80  Entries 155 

Invoice-Book— containing  4  Entries 165 

Sales  Book— H^ontaining  4  Entries 169 

Commission  Sales-Book  —  containing  25 

Entries 173 

Bill-Book — containing  40  Entries 179 

Mkrcantile  Forms — 
Receipts— Orders — Promissory  Notes — 

Drafts— B ills  of  Exchange 186, 187 

Accounts  of  Sales 188, 189 

Accounts-Current  without  Interest 190 

Accounts-Current  with  Interest 192-196 

Accounts-Current  averaged 198 

Letters — 

Circular 201 

On  Ordering  Goods 202 

On  Consigning  Goods ' 203 

On  rendering  Account-Sales 204 

On  drawing  Drafts 205 

On  rendering  Accounts-Current 205 

Mercantile  Calculations — 

Discount  and  Interest 206 

Common  Divisor  of  6000 — how  found-.  208 

Commission  and  Insurance 208, 209 

Exchanges — 

English,  French,  &c 209-211 

Equation  of  Payments — 

Averaging  Bills 214 

Averaging  Account-Sales 215 

Averaging  Accounts 216 

Averaging  Balances 2H  217 

Profits  and  Losses 219 


*^*  This  work  is  published  in  the  SrAirisH  Lahooaok  in  the  same  style. 


DIRECTIONS    TO   TEACHERS. 


It  is  evident,  since  book-keeping  is  the  disposition  of  business  transactions 
in  account-books,  that  there  is  no  more  effectual  way  of  teaching  that  science 
than  that  of  furnishing  the  pupil  with  a  course  of  well-selected  mercantile 
transactions,  of  teaching  him  to  make  the  entries  of  the  same  in  the  different 
account-books,  and  dispensing  the  necessary  instruction  as  the  transactions 
arise  and  the  occasion  may  require.  In  this  manner  the  pupil  becomes  famil- 
iar with  the  forms  and  objects  of  all  the  account-books  in  common  use  in  mer- 
cantile or  commercial  houses,  gains  no  insignificant  idea  of  business  affairs, 
and  eventually  arrives  at  a  just  conception  of  the  science — its  theory  and  prac- 
tice. Such  a  method  of  teaching  book-keeping  is  undoubtedly  the  most  natu- 
ral, interesting,  and  practical ;  and  I  know,  from  many  years'  experience,  that 
yery  beneficial  results  accrue  to  the  pupil  when  it  is  pursued  under  the  gui- 
dance of  any  intelligent  teacher. 

In  order  that  the  pupil  may  enter  upon  the  course  of  instruction  laid  down 
in  this  work  for  him  to  pass  through,  let  him  have  a  set  of  five  blank  books — 
Day-Book,  Journal,  Leger,  Cash-Book,  and  Bill-Book.*  The  first  three  may 
each  contain  eight  sheets  of  cap  paper,  ruled  to  correspond  with  those  books ; 
the  other  two  may  contain  about  three  sheets  each,  ruled,  &c.  Next,  let  the 
pupil  transcribe  into  his  Day-Book  the  transactions  of  January,  from  the  Day- 
Book  of  this  volume,  inserting  his  own  name  in  place  of  Thomas  Blanchard. 
The  entries  of  the  notes  in  the  Bill-Book  should  be  made  at  the  time  of  copying 
the  Day-Book  entries,  as  the  notes  arise  in  the  transactions.  The  same  in  re- 
spect to  the  Cash-Book ;  let  the  pupil  enter  in  it  all  the  sums  of  money  received 
and  paid,  as  he  receives  and  pays  them,  composing  his  entries  from  the  Day- 
Book  on  a  separate  sheet,  and,  when  correct,  copying  them  into  his  Cash-Book. 
Next,  let  the  pupil  begin  to  journalize :  he  will  make  his  Journal  entries  first 
on  a  separate  sheet,  and,  when  found  correct,  copy  them  into  his  Journal. 
Next,  he  will  post,  or  make  entries  in  his  Leger  ;  and,  lastly,  make  a  trial- 
balance  from  the  Leger.  He  may  balance  the  Cash-Book  one,  two,  or  more 
times  during  the  month. 

If  one  part  of  the  science  is  to  receive  more  attention  than  the  other,  it  is  the 
journalizing ;  this  is  fully  and  constantly  explained,  and  the  explanations  dated 
to  correspond  with  the  transactions  and  entries.  In  general,  the  order  of  pro- 
ceeding with  the  course  of  instruction  is  most  carefully  delineated  in  the  first 
sixty-eight  pages  ;  and  it  is  confidently  believed  that  teachers  will  find  the  con- 
tents of  this  book  very  conveniently  arranged  for  teaching  in  classes  or  otherwise. 


*Aathe  Inyoice  and  Sales  Books  include  nothing  more  than  deeoriptions  of  goods  bought  and  sold, 
it  is  not  thouglit  wortli  while  tu  iiitruduce  thein  into  the  cuuriie.  Blank  Books  in  sets  (six  to  the  set), 
arranged  by  the  Author,  may  be  had  of  the  Publisher. 


>, 


THE    SCIENCE 


OF 


DOUBLE-ENTRT  BOOK-KEEPING. 


SIMPLIFIED. 


INTRODUCTION. 

The  Bcience  of  Book-Keeping  by  double-entry  teaches  to  record, 
systematically  and  free  from  eiTor,  the  various  transactions  of  business 
or  of  the  mercantile  profession,  so  that  the  merchant  may  know  his  pecu- 
niary situation,  be  able  to  substantiate  his  claims  and  protect  his  prop- 
erty, and  at  dissolution  may  leave  behind  him  such  evidence  as  will 
enable  his  friends  to  understand  his  commercial  relations  and  engage- 
ments, and  to  wind  up  his  affairs  in  a  manner  satisfactory  to  all  parties 
concerned.  ^ 

To  exhibit  with  clearness  and  regularity  a  correct  and  continued 
record  of  the  mercantile  transactions  that  occur  between  ourselves  and 
others,  we  deem  it  necessary  to  introduce  the  following  books : 


1 

2 

3. 

4. 

5. 

6 

7. 

8. 


Invoice-Book. 
SaijEs-Book. 
Cash-Book. 

Commission  Sales-Book. 
Bill-Book. 
Day-Book,  ^ 
Journal,      >  Principal. 
Leger,         ) 


Of  these  books,  the  Cash-Book,  Sales-Book,  Day-Book,  Journal,  and 
Leger,  appear  to  be  indispensable  in  all  houses ;  while  the  others  may 
or  may  not  be  required.  For  instance,  if  no  promissory  notes  are 
^ven  or  received,  there  would  be  no  occasion  for  the  Bill-Book ;  and 
if  the  bills  of  purchases  or  invoices  were  filed  away  with  care,  the  In- 
voice-Book might  be  dispensed  with. 


12 


INTRODUCTION. 


INVOICE-BOOK. — This  book  should  contain  a  minute  description 
of  all  the  merchandise  with  which  we  are  concerned — all  that  we  buy  or 
receive.  Entries  in  this  book  consist  merely  of  copies  of  the  bills  or 
invoices  of  goods  bought,  or  received  to  be  sold  on  commission.  The 
original  bills  and  invoices  should  be  preserved  with  care. 

SALES-BOOK. — This  book  should  give  a  description  of  all  the  mer- 
cliandise  we  sell  or  pass  out  of  our  possession.  At  the  time  the  pur- 
chaser selects  his  goods,  they  are  described  in  the  Sales-Book— quantity, 
•  {uality,  and  price;  and  from  this  book  we  make  out  his  bill.  In  this 
order  we  may  render  a  second  or  third  bill  exactly  like  the  first. 

CASH-BOOK. — This  book  shows  all  the  sums  of  money  which  we 
pay  or  receive,  with  a  short  explanation  relating  to  each  sum.  The 
entries  in  this  book  are  made  at  the  time  of  paying  or  receiving  the 
money. 

In  a  business  where  there  are  many  sums  received  and  paid,  this  book 
should  be  balanced  daily ;  which  is  done  by  adding  both  pages  (Dr.  and 
Cr.),  and  subtracting  the  total  paid  from  the  total  received,  and  the  dif- 
ference will  be  the  **  balance  on  hand."  This  balance  should  agree  with 
the  money  itself 

COMMISSION  SALES-BOOK.— This  book  shows  the  particulars 
)f  merchandise  sold  by  us  for  others.  Entries  are  made  in  this  book 
,rom  the  common  Sales-Book,  and  from  it  we  make  the  Accounts  of 
Sales  that  we  may  have  to  remit  to  those  for  whom  we  have  sold. 

BILL-BOOK. — This  book  shows  a  description  of  all  the  notes  or 
acceptances  in  oiir  favor  or  against  us,  with  their  dates,  credits,  when 
due,  and  amounts.  Those  in  our  favor  are  entered  under  the  head  of 
Receivable,  and  those  against  us  under  Payable. 

DAY-BOOK. — This  book  shows  a  clear,  simple,  complete,  and  brief 
relation  of  all  the  transactions  of  our  business.  The  greater  part  of  the 
entries  in  this  book  are  taken  or  composed  from  the  Invoice-Book,  Sales- 
Book,  and  C ash-Book.  The  Day-Book  may  be  considered  the  most 
important  of  all  the  books,  as  it  gives  us  a  complete  history  of  our 
business. 

JOURNAL. — This  book  shows  the  names  of  the  debtors  and  credit- 
ors of  all  the  transactions  recorded  in  the  Day-Book,  for  the  purpose  of 
transferring  the  same  from  the  Day-Book  to  the  Leger.  All  the  science 
of  Book-Keeping  is  embraced  in  the  Journal. 

LEGER. — This  book  shows  the  accounts  of  all  our  debtors  and  cred- 
itors. The  entries  in  this  book  are  drawn  from  the  Journal.  The  great 
and  only  object  of  this  book  is  to  show  the  result  of  our  business  with 
every  person,  property,  and  object.  Every  sum  that  any  individual  or 
object  may  owe  us  or  we  may  owe  him,  from  the  beginning  of  the 
business  to  the  present  time,  will  be  found  under  its  proper  head  in  this 
hook. 


JOURNALIZING. 

All  the  explanations  of  business  transactions,  and  the  entries  they 
require  in  the  Journal,  will  be  found  on  the  immediately  following 
pages.  The  reader  need  not  look  in  the  Day-Book,  Journal,  or  Leger, 
for  instruction,  because  those  books  give  the  business  that  is  supposed 
to  occur,  and  not  the  instruction.  By  this  arrangement,  the  student  will 
derive  the  advantage  of  knowing  which  part  of  the  volume  is  to  serve 
as  his  teacher,  and  which  part  he  is  to  learn  or  be  taught. 

INFALLIBLE  RULE. 

In  order  to  render  that  part  of  the  subject  commonly  considered  diffi- 
cult, more  simple,  positive,  and  rational,  and  to  conduct  the  mind  of  the 
reader  or  student  into  its  true  elements,  securing,  at  every  degree  of 
advancement,  a  clear  understanding  of  whatever  arises  for  his  consider- 
ation, I  can  not  recommend  a  too  close  observance  of  the  one  and  only 
rule  needful.     This  rule  originates  thus : — 

Book-Keeping,  or  the  science  of  accounts,  is  a  systematic  exhibition 
of  all  that  is  owed  us,  and  all  that  we  owe.     These  are  our  Creditors,  and 
those  our  Debtors ;  consequently,  the  science  may  be  said  to  be  founded 
on  the  two  words.  Debtor  and  Creditor.     Hence  arises  the  rule — infu' 
lible  in  its  application,  and  in  its  truth  self-evident. 

THE  RULE. 

Whoever  or  whatever  owes  us  is  Debtor Dr. 

Whoever  or  whatever  we  owe  is  Creditor Or. 

Or,  in  other  words — 

Debit  whatever  owes  us  ;  and 
Credit  whatever  tt?e  owe. 

Or,  we  may  resolve  the  rule  into  the  following  simple  questions : 

What  person  or  object  owes  us  ? 

For  that  alone  is  the Dr. 

What  person  or  object  do  we  owe  ? 

For  that  alone  is  the Cr. 

Note.— There  is  a  discrimination  in  the  sentences  of  this  rule,  not  at  once 
perceived  by  all  readers.  Every  mercantile  transaction  contains  many  more 
debtors  and  creditors  than  we  are  directly  concerned  with.  For  instance,  in 
the  simple  transaction  of  buying  merchandise,  there  are  four  debtors  and  cred- 
itors from  which  we  have  to  choose  in  making  a  Journal  entry:  1st.  Mtr- 


womma 


14 


JOURNALIZING. 


cliandise  is  a  debtor,  because  it  owes  us  for  its  cost ;  2d.  We  are  debtor,  be- 
cause we  owe  the  person  of  whom  we  bought ;  3d.  Merchandise  is  creditor, 
because  the  person  who  sold  it  owes  it  for  the  value  it  produced  him ;  4th.  The 
person  we  bought  of  is  creditor,  because  we  owe  him.  Here,  then,  we  find 
two  debtors  and  two  creditors  arising  out  of  this  little  transaction :  but  the 
rule  says  that  only  those  that  owe  m5,  and  those  that  we  owe^  are  to  be  counted 
as  debtors  and  creditors  in  our  books,  however  many  more  there  may  be. 


THE  BUSINESS  OF  JANUARY: 


Embracing  Entries  of  twenty-six  Transactions,  relating  to— Entering  into  Partnership — Ad- 
vancing Capital— Assuming  Partners'  Debts— Simple  Purchases  and  Sales — Simple  Be- 
ceipts  and  Payments— Loans— Loans  on  Notes  and  Interest — Receiving  and  Delivering 
Note»— Paying  our  Notes. 

The  Day-Book  commences  with  a  statement  of  the  situation  of  the 
party  or  parties  entering  into  partnership — what  capital  they  possess,  and 
what  it  consists  of;  what  they  owe,  and  how  they  owe  it.  In  making 
Day-Book  entries,  or  recording  a  transaction  in  the  Day-Book,  we  do  not 
say  who  is  debtor  or  who  is  creditor,  because  this  belongs  to  the  Journal. 

The  capital  being  advanced — that  is,  the  money  deposited  in  the 
banks  and  entered  in  the  Cash-Book — the  notes  described  in  the  Bill- 
Book,  the  inventory  of  merchandise  copied'  into  the  Invoice-Book,  arid 
the  articles  of  agreement  signed  and  exchanged,  we  make  an  entry  in 
the  Day-Book  similar  to  that  which  appears  in  said  book  under  date  of 
January  5,  1850. 

The  Journal  commences  with  an  entry  formed  from  the  first  one  in 
the  Day-Book.  The  entry  consists  of  a  resolution  of  those  that  owe  utt 
and  those  that  we  owCy  for  the  purpose  of  conveying  the  same  to  the 
Leger.  These  Journal  entries  are  made  by  the  application  of  the  rule, 
thus :  Read  the  Day-Book  entry  carefully,  and  endeavor  to  find — 

Who  or  what  owes  us,  and  write  that  as Dr. 

Who  or  what  we  owe,  and  write  that  as Cr. 

Day-Book — January  5. 

The  first  entry  in  the  Day-Book  gives  the  following  entry  in  the 
Journal : — 

Journal — January  5. 

Sundries  Dr.  To  Sundries. 

Cash $38,000  00 

Bills  Receivable 4»670  00 

Merchandise *»125  00 

Charies  Lawrence 1^0  OQ    S45,935  00 

To  Thomas  Blanchard 28,000  00 

ToC.C.Marsh 17,935  00      45,935  00 


JOURNALIZING. 


15 


J- 


Elucidation. — The  words  "  Sundries  Dr.  To  Sundries'*  are  merely 
a  preface  to  the  debtors  and  creditors,  indicating  that  there  are  more 
than  one  that  owe  us,  and  more  than  one  that  we  owe.  The  first  four 
names  in  the  above  entry  are  called  debtors.  We  have  now  to  show 
why  they  are  so. 

Cash  is  debtor,  because  that  kind  of  property  denominated  Cash  owes 
us  for  the  amount  of  value  we  have  in  it — viz.,  $38,000. 

Bills  Receivable  are  debtor,  because  the  notes  which  we  hold  against 
different  persons,  owe  us  for  the  sums  for  which  they  are  written  or 
drawn — viz.,  $4,670.  Observe,  it  is  not  the  persons  who  have  given  us 
these  notes  that  owe  us,  but  the  notes  themselves ;  our  claim  for  the 
value  consists  in  the  possession  of  these  notes.  The  title  of  bills  receiv- 
able is  applied  to  all  paper  claims  in  our  favor,  such  as  notes,  drafts,  &c. ; 
but  there  is  no  necessity  to  give  anything  a  title  until  ice  have  deter- 
mined whether  it  owes  us,  or  we  owe  it. 

Merchandise  is  debtor;  because  that  property  owes  us  for  the  value  in 
it,  which  is  $3,125. 

Charles  Lawrence  is  debtor,  because  he  owes  us  for  the  amount  of  a 
claim  that  we  have  against  him — $140. 

The  creditors  are — 

Thomas  Blanchard,  who  is  creditor  because  the  firm,  Blanchard  & 
Marsh,  owes  him  individually  for  the  amount  of  capital  he  has  advanced 
—$28,000. 

C.  C.  Marsh,  for  the  same  reason,  for  his  part  of  the  capital  advanced 
—being  $17,935. 

The  sum  total  of  the  debtors  should  be  extended  into  the  last 
column,  and  should  agree  with  the  amount  of  the  creditors  also  ex- 
tended. 

The  amount  of  the  sums  of  the  debtors,  and  that  of  the  creditors, 
should  always  be  equal  in  every  Journal  entry. 

When  an  entry  in  the  Day-Book  has  been  Journalized,  or  entered  in 
the  Journal,  we  place  the  page  of  the  latter  in  the  margin  of  the  former, 
opposite  the  said  entry. 

Note. — We  make  a  distinction  in  the  position  of  the  debtors  and  creditors 
in  the  Journal  entries,  by  placing  the  debtors  close  against  the  line  on  the 
left,  and  the  creditors  about  an  inch  further  to  the  right. 

The  preposition  **  To"  is  always  placed  before  the  names  of  the  creditors, 
because  the  meaning  is,  that  we  are  /)-.  to  those  creditors ;  we  are  Dr.  being 
words  understood  and  not  expressed. 


Day-Book — 2d  Entry  of  January  5. 

The  transaction  under  this  date  in  the  Day-Book  gives  the  following 
debtors  and  creditors,  or  Journal  entry : — 

Sundries  Dr.  To  Bills  Payable.  .$2,310  00 

Thomas  Blanchard $1,080  00 

C.C.  Marsh i'230  00 

2,310  00 


16 


JOURNALIZING. 


Elucidation. — In  this  entry,  as  in  the  first,  the  debtors  are  prefaced 
by  the  word  Sundries,  there  being  more  than  one  debtor. 

Thomas  Blanchard  is  debtor,  because  he  individually  owes  us  (the 
firm)  for  the  amount  of  his  note,  which  we  have  assumed. 

C  C.  Marsh  is  our  debtor  for  the  same  reason. 

The  creditor  in  this  entry  is  Bills  Payable.  It  is  so  because  we  owe 
the  notes;  liaving  assumed  them,  they  now  stand  out  against  us  as  our  owik 

Bills  Payable  is  a  title  given  to  notes  and  acceptances  with  our  sig- 
nature in  favor  of  others. 

Day-Book — January  7. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Jounial : — 

Store-Fixtures  Dr. 

To  Cash $300  00 

Elucidation. — The  store-fixtures  are  a  property  which  has  cost  us 
$300,  for  which  it  owes  us,  and  therefore  is  debtor.  Cash  is  creditor, 
because  we  owe  that  properly  for  paying  the  sum  for  us.  For  example, 
if  John  Sims  had  paid  for  the  store-fixtures  for  us,  we  would  then  owe 
him  instead  of  Ceish. 

Observe,  that  when  we  write  "  Store-Fixtures  Dr.  To  Cash,"  we  do 
not  mean  to  say  that  the  former  owes  to  the  latter,  but  that  Store-Fix- 
tures are  debtor  to  us,  and  that  we  are  debtor  to  Cash.  If  this  Journal 
entry  were  written  in  full,  it  would  read  thus: — 

Store-Fixtures are  Dr.  to  us  for $300  00 

We  are  Br.  To  Cash .for 300  00 

We  ought  never  to  forget  that  the  words  in  italics,  although  never 
expressed,  are  always  to  be  understood.  Omitting  these  words,  leaves 
the  entry  as  it  should  be  in  the  Journal. 


I 


Day-Book — January  8. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Paul  Harris                               Dr.  \to  %ls) 
(  We  are  Dr.)  To  Merchandise $325  00 

Elucidation. — Paul  Harris  is  debtor,  because  he  owes  us  for  the 
amount  of  the  goods  sold  to  him. 

Merchandise  is  creditor,  because  we  owe  that  class  of  property  for 
having  produced  us,  in  this  case,  $325.  For  the  value  that  Merchandise 
has  produced  us.  Hams  is  responsible. 

We  never  see  the  word  Cr.  (creditor)  in  Journal  entries.  It  is  un- 
necessary, because  the  debtor  lieing  always  named  Jlrst  in  the  entry,  it 
follows  that  the  second  must  be  the  creditor. 


JOURNALIZING. 
Day-Book — January  10. 


17 


The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en 
try  in  the  Journal : —  «  6 

Bills  Receivable                        Dr.  {to  us) 
(  We  are  Dr.)  To  Merchandise ^500  OO 

,?,^^^'?;f  ™^— The  promissory  note  of  William  Blakeley,  which  we 
entitle  Bills  Receivable,  is  debtor,  because  it  owes  us  for  the  value  the 
merchandise  has  produced  us — $500. 

^r'^^nn^^^T^i^®  '^  creditor,  because  we  owe  it  for  producing  us  the  sum 
ot  5PO00.  It  a  man  had  produced  or  given  us  $500,  we  all  would  be 
wilimg  to  owe  him,  or  credit  him,  for  it ;  why  not,  then,  acknowledge 
ourselves  indebted  to  merchandise  for  what  it  produces  ? 

Day-Book — January  12. 

tr  '^in^reTo^urir^.— ^^'^  ^^^^  '"^  ^^^  Day-Book  gives  the  following  en- 
Cash  Dr 

To  Merchandise...    ^i25  00 

th^ZlT'^T'T^^^  i'  debtor,  because  it  owes  us  for  the  value  that 
the  merchandise  has  produced  us,  for  that  value  is  in  the  cash.     Cash  is 

Tt  didSre  ^^  '''^^'  ""'  ^^^^  '^°''^  "'"''^  ^^^  transaction  occurred  than 
Merchandise  is  creditor,  because  we  owe  it  for  producing  us  the  $125. 

Day-Book — January  13. 

Oliver  Otis  &  Co.  Dr 

To  Merchandise ! $2,000  00 

not  yet  paW  ^°'"^'  ^'  *""""  "''^  '^""'  ^"^  ^^^  ^^ch  they  ha^ 

The  Merchandise  is  creditor,  because  we  owe  it  for  the  value  it  Hm 
produced  us,  and  for  which  Otis  &  Co.  are  responsible. 

Day-Book — January  14. 

try^nXX^al  :!*"  '"''  "  '""  ^^y^"""  ^"'^  ""«  «>"°-»S  - 

Merchandise  j). 

To  Henry  Austin .' jig^o  ^^ 

thafsr^r^r^^e  Itt  dXot"''-^  "^  "'-'  "^  *'•'''' ''  "^  "^  «" 

3 


18 


JOURNALIZIMG. 


:  1 


Henry  Austin  is  creditor,  because  we  owe  him  for  the  goods  we  have 
bought  of  him. 

DaY-BooK — January  14   (2d  traniaclion  of  thi«  date). 

The  second  transaction  of  this  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

Merchandise                                      Dr.  {tout) 
(  We  are  Dr.)  To  Cash ^800  00 

Elucidation. — The  goods  we  have  bought  are  debtor,  because  they 
owe  us  for  their  cost — $800. 

We  are  debtor  to  Cash,  because  that  article  has  paid  Rogers  &  Bros, 
for  us ;  therefore  Cash  is  the  creditor,  expressed  as  above. 

Note.— It  is  not  exactly  true  to  say  that  we  paid  Rogers  &  Bros,  for  the 
merchandise  in  the  above  transaction.  We  could  not  do  it  of  ourselves ;  we 
must  employ  some  agent ;  the  agent  in  this  case  was  Cash. 

Day-Book — January  16. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Merchandise  Dr.  (to  us  and  we)  To  Sundries.. $3,200  00 

ToCash ...$2,000  00 

"    Merchandise 1>200  00      3,200  00 

Elucidation. — ^First,  we  always  ask  ourselves,  what  owes  us  ?  And 
we  write  down  what  we  think  owes  us  as  the  Dr. 

The  merchandise  owes  us,  because  it  has  cost  us  $3,200 ;  and  we  owe 
the  Cash  for  having  paid  $2,000  for  us  toward  the  payment  of  $3,200 ; 
and  we  owe  to  some  other  goods,  likewise  called  merchandise,  for  hav- 
ing paid  for  the  balance— being  $1,200.  We  find,  then,  in  this  transac- 
tion, one  debtor  and  two  creditors. 

Day-Book — January  17. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

James  Truman  Dr.  {to  us) 

(  We  are  Dr.)  To  Cash tl,000  00 

Elucidation. — Truman  owes  us  for  the  amount  wo  have  lent  him. 
Cash  is  the  creditor ;  or,  we  owe  to  Cash  for  paying  the  amount  to 
J.  Truman  for  us. 

Day-Book — January  19. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  followiiig  en- 
try in  the  Journal : — 


JOURNALIZING.  19 

Sundries  Dr.  (to  us  and  we)  To  Oliver  Otis  &  Co.  $2,000  00 

Bills  Receivable ^i^qOO  00 

^^^ 1,000  00    2,000  00 

ELUciDATioN.-The  word  "Sundries,"  as  we  have  before  said,  is 
merely  a  preface  to  the  debtors,  which  are  placed  directly  under  it 
««  nl^  yf  livable  owe  us  for  part  of  the  sum  that  Otis  &  Co.  have  paid 
lis,  and  therefore  are  debtor.  ^ 

Cash  owes  us,  because  we  have  received  part  of  the  sum  that  Otig 
«  Co.  owed,  m  cash. 

in  ^nm;Ti^^^'V*  P^''^''  ^^^^  "'  "^^^^  ^«  o^^^'  ^^  cou'se  he  must  pay  us 
in  some  class  of  property ;  consequently,  the  property  or  thin?  S  whj c h  he 

Enl'p'ii°p''  "'  i^'  sum  which  the  person  owed.    In  ths  manner  we  s^^ 
how  Bills  Receivable  and  Cash  owe  us,  and  become  debtors  iS  place  oTot's 

Otis  &  Co.  are  creditors  because  we  owe  them  for  having  paid  us  the 
sum  they  owed,  and  for  which  we  had  charged  them. 

Note.— If  we  should  think  that  we  do  not  owe  Otis  &  Co.,  because  thev 
have  only  paid  us  what  they  owed,  still  we  must  agree  in  this  •  that  as  thev 
have  paid  us  $2,000,  they  ought  to  be  credited  foTthat  sum  whicramounts 
wei^ToU hir"^  "^  ^"^''^"'-  ^— one  should  be  credited  fo'Xt 

Day-Book— January  21. 

Bills  Receivable                              Dr.  (to  us) 
(WeareDr.)  To  Paul  Harris $335  ^^ 

Elucidation.— The  sum  which  Harris  owed  us  is  now  owed  to  us  bv 
the  note,  which  we  call  Bills  Receivable  ^ 

yn^TX^^^'""^  "^^"^  T  "^^.^'^  *^^^^'  ^^«  ™ade  ««  responsible  to 
him  for  the  same  sum ;  for  which  we  credit  him,  or  for  which  we  owe 

Day-Book — January  22. 

,  S^^  ■  Dr.  (to  u,) 

(WeareDr.)  To  James  Truman ji^qoO  00 

ELUciDATioN.-Cash  ou,e,  u,,  because  in  this  class  of  property  we    * 

we  re::rft    "'  '"■"  *'"  ''  ?"''  "»•     «-''  "  ^'-^y^  -  Sr  wC 

..e'r  pai^Zo"  aX:r:fc^'""'^  -^  "-  '"-  «"  ^^  «-  which 


20 


JOURNALIZING. 


.  t! 


Ml 


Note. — It  is  very  necessary  to  understand  well  the  exact  use  and  import  of 
the  words  debtor  and  creditor^  because  the  most  important  part  of  this  science 
consists  in  being  able  to  find^with  facility  "who  or  what  owes  us,"  and  "to 
what  or  whom  we  owe,"  in^l  mercantile  transactions.  A  clear  understand- 
ing of  the  more  simple  transactions  will  ajQTord  us  great  aid  in  disposing  of 
the  more  complicated.  For  this  reason  we  are  so  particular  in  explaining  the 
simple  entries  of  this  month's  transactions. 


Day-BoOK — January  22   (2d  transaction  of  this  date). 

The  second  transaction  of  this  date  in  the  D  ay-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

Henry  Austin                                  Dr.  {fo  us) 
(  We  are  Dr.)  To  Bills  Payable $1,500  00 

Elucidation. — Having  paid  H.  Austin  what  we  owed  him,  he  now 
owes  us  for  the  sum  we  owed  him,  which  balances  his  account,  or  makes 
us  owe  each  other  equally. 

We  owe  to  our  note  (which  we  call  Bills  Payable),  because  it  has 
paid  Austin  for  us ;  or,  because  our  note  stands  out  against  us,  holding 
us  responsible  for  the  face  of  it — $1,500. 

Note. — It  may  appear  absurd  to  some,  to  say,  in  this  transaction,  that  Aus- 
tin owes  us  ;  but  he  does,  nevertheless,  and  it  may  be  proved  thus :  We  owed 
Austin  $1,500,  which  will  always  appear  on  the  credit  side  of  his  account  in 
our  books ;  nothing  should  or  can  obliterate  the  transaction  that  made  us  owe 
him.  Now,  then,  the  only  way  we  can  settle  this  debt,  is,  not  by  getting  out 
of  his  debt,  but  by  getting  him  into  our  debt  for  the  same  amount ;  therefore, 
when  we  pay  him  what  we  owe  him,  he  owes  us  for  the  sum  paid  him,  which 
makes  us  owe  each  other  equally. 

All  the  sums  on  the  credit  side  of  an  account  in  our  Leger,  are  sums 
that  we  owe,  and  those  on  the  debit,  are  sums  owed  to  us.  It  is  only 
the  balance,  or  difference,  which  is  to  be  paid. 


Day-Book — January  24. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Sundries  Dr.         To  Merchandise.. $4 10  00 

S.  H.  Lovell $250  00 

Cash 160  00     410  00 

ELUCiDATioN.-^The  "  Sundries"  (Lovell  and  Cash)  owe  m,  h^cause 
the  amount  that  Merchandise  has  produced  us  is  in  them ;  they  are 
therefore  debtors. 

We  are  debtor  to  Merchandise,  or,  which  is  the  same  thing,  Merchan- 
dise is  our  creditor,  because  we  owe  it  for  producing  us  $410. 


JOURNALIZING.  2\ 

Day-Book — ^January  26. 
Elucidation. — Similar  to  that  of  the  24th. 

Day-Book — January  28. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Bills  Receivable  Dr.  To  Sundries.  .$2,121  00 

To  Cash $2,000  00 

"   Interest 121  00      2,12100 

Elucidation. — In  this  transaction  we  lend  money  on  interest,  and 
receive  a  note  for  the  amount  that  will  be  due  at  the  end  of  the  year. 
The  note  is. responsible  to  us  for  the  amount;  the  note  owes  us,  and 
therefore  it  is  debtor  for  the  amount  it  is  drawn  for — $2,121. 

We  say  "  To  Sundries,"  because  we  owe  more  than  one — Cash  and 
Interest. 

Cash  is  creditor,  because  it  has  paid  to  J.  Truman  for  us  the  $2,000. 

Interest  is  creditor,  because  we  owe  it  for  producing  us  the  $121. 
Interest  is  a  branch  of  our  business.  The  name  our  business  receives 
in  our  books  is  Profit  and  Loss  ;  therefore,  Interest  account  is  a  branch 
of  the  Profit  and  Loss  account. 

NoTE.--This  science  renders  susceptible  of  responsibility  things  as  well  as 
persons;  that  is,  in  the  same  manner  that  John  Sims  becomes  our  debtor  or 
creditor,  so  may  a  bag  of  coffee,  or  a  box  of  sugar.  Our  Business,  which  we 
entitle  ''Profit  and  Loss,'*  may  also  become  our  debtor  or  creditor,  like  Sims 
or  the  coffee.  When  it  is  in  our  favor,  and  produces  us  value,  we  owe  it  and 
It  becor-.es  a  creditor ;  when  it  goes  against  us,  and  costs  us,  or  makes  us  lose 
it  owes  us,  and  it  becomes  a  debtor.  * 

Day-Book — January  30. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  followinff  en- 
try in  the  Journal : —  ^ 

Bills  Payable  Dr. 

T<^  ^^^ $1,230  00 

Elucidation.— The  note,  now  pai4  and  cancelled,  was  issued  by  our 
partner,  Mr.  Marsh,  before  this  partnership  began,  and  it  was  assumed 
by  us  as  our  own. 

Bills  Payable  (the  name  we  give  to  the  note)  is  debtor,  because  it 
owes  us  for  having  paid  it  what  we  owed  it.  Had  we  paid  a  person 
what  we  owed  him,  he  would  be  debtor :  the  note  is  to  be  treated  as  a 
person.  It  v^  not  T.  P.  Cope  that  we  owed;  it  was  the  note,  in 
whosever  hands  it  might  have  been. 

\y'e  are  debtor  to  Cash,  or  Cash  is  the  creditor,  because  we  owe  it  for 
paying  the  note,  or  the  sum  of  the  note,  for  us. 


%. 


-«A^ 


POSTING. 


23 


I  'I 


il 


POSTING 


The  transactions  of  January  having  been  Journalized — that  is,  pre- 
pared for  the  Leger — we  will  now  begin  to  post.  Posting  is  a  very 
simple  operation,  being  little  more  than  copying  from  the  Journal  into 
the  Leger.  The  object  of  posting  is  to  enable  us  to  find  all  concerning 
one  thing  or  person,  from  the  beginning  of  the  business  to  the  present, 
at  one  place  in  one  book — the  Leger. 

Example. — Merchandise,  we  perceive,  is  concerned  in  most  of  our 
transactions,  from  the  beginning  to  the  end  of  our  business ;  therefore, 
if  we  do  not  collect  all  relating  to  it  at  one  place,  we  can  not  ascertain, 
without  much  difficulty,  the  amount  we  have  bought  or  sold  :  and  should 
we  desire  to  know  how  much  any  person  owes  us,  or  we  owe  him,  we 
would  be  obliged  to  examine  the  Day-Book  from  the  first  page  to  the 
last ;  but  when  his  account  is  posted,  we  have  only  to  turn  to  a  certain 
page  appropriated  to  him  in  the  Leger,  where  we  shall  find  the  result 
of  all  our  transactions  with  him. 

By  the  aid  of  the  Journal,  we  deduce  from  every  transaction  in  the 
Day-Book  all  that  owes  us,  and  all  that  we  owe,  which  is  all  that  passes 
into  the  Leger.  The  Journal,  therefore,  serves  to  convey  the  debtors 
and  creditors  from  the  Day-Book  to  the  Leger. 

Note. — To  the  Leger  belongs  an  Index,  which  is  often  a  part  of  the  book  ; 
but  it  is  more  convenient  to  have  it  separate. 

Wfe  now  proceed  to  show  the  operation  of  posting — transferring  the 
debtors  and  creditors,  with  their  sums,  from  the  Journal  to  the  Leger, 
beginning  with  the  first  entry  in  the  Journal. 


TouRNAL — January  5. 

Sundries  Dr.  To  Sundries. 

Cash $38,000  00 

Bills  Receivable 4,670  00 

Merchandise 3,125  00 

Charles  Lawrence 140  00    $45,935  00 

To  Thomas  Blanchard 28,000  00 

ToC.C.Marsh 17,935  00      45,935  00 


5 

4 

10 

1 
1 


If 


To  Post  the  above  Entry. — As  "  Sundries  Dr.  To  Sundries"  is  only 
a  preface,  the  first  thing  that  we  see  in  the  above  entry  is  "  Cash  Dr. 


$38,000."  Cash,  therefore,  is  the  first  account  to  be  opened  in  the 
Leger.  We  appropriate  for  it  page  2,  and  vmte  in  the  centre  of  the 
book  (or  page)  the  word  "  Cash,"  and  on  the  sides,  the  abbreviations. 
"Dr."  and  "  Cr." 

Note.— The  tferm  "  Dr."  is  always  on  the  left,  and  the  "  Cr."  on  the  right. 

Cash  being  a  debtor  in  the  above  entry,  we  mus?  make  the  entry  on 
the  debtor  side  of  the  account,  thus :  In  the  1st  and  2d  columns,  we 
write  the  date ;  in  the  3d  column,  the  preface  of  the  other  part  of  the 
Journal  entry,  which  is,  "To  Sundries;"  in  the  4th  column,  the  page 
of  the  Journal  from  which  we  take  the  entry ;  and  in  the  5th,  the  sum 
that  Cash  owes  us,  being  $38,000.  (See  the  Cask  account  in  the  Leger, 
page  2.)  This  done,  place  the  folio  of  the  Cash  account  against  the 
word  "Cash"  in  the  Journal,  to  indicate  that  il  is  posted.  Enter  the 
title  "Cash"  in  the  Index.  ^ 

So  far,  we  have  only  posted  the  first  debtor;  the  others,  which  are 
Bills  Receivable,  Merchandise,  and  C.  Lawrence,  we  post  in  the  same 
manner,  in  the  order  they  come,  but  on  separate  pages. 

We  now  piss  to  the  creditors  of  the  foregoing  entry,  the  first  of  which 
is  •*  Thomas  Blanchard."  For  him  we  open  an  account  on  page  1,  by 
writing  his  name  and  the  abbreviations  "  Dr."  and  "  Cr."  As  he  is  a 
creditor  in  the  entry,  we  must  make  the  entry  on  the  creditor  side  of  the 
account ;  and  in  the  1st  and  2d  columns  we  write  the  date ;  in  the  3d 
column,  the  preface  of  the  other  part  of  the  Journal  entry,  "  By  Sun- 
dries ;"  in  the  4th,  the  folio  of  the  Journal ;  and  in  the  5th  column,  the 
amount — $28,000.  In  the  Journal,  opposite  his  name,  place  the  page 
of  the  Leger,  to  show  that  it  is  posted. 

The  other  creditor,  C.  C.  Marsh,  is  posted  in  the  same  manner. 

As  the  Journal  presents  only  four  different  forms  of  entry,  it  will  be 
necessary  to  make  only  four  distinct  explanations  to  teach  that  part  of 
the  science  called  Posting.  Having  given  one  explanation,  we  proceed 
now  to  the  second. 

Journal — January  5  (2d  Entry  of  this  date}. 

6     Sundries  Dr.     To  Bills  Payable ..$2,310  00 

1     Thomas  Blanchard $1,080  00 

I     C.  C.  Marsh 1,230  00    2,310  00 

To  Post  the  above  ENTRY.-^-Blanchard  &  Maish  being  our  debtors, 
m  this  entry  for  the  sums  in  front  of  their  names,  we  return  to  their  ac- 
counts, already  opened  on  page  1,  and  in  the  1st  and  2d  columns,  on  the 
debtor  side,  we  write  the  date;  in  the  3d  column,  the  opposite  part  of 
the  Journal  entry,  "To  Bills  Payable;"  in  the  4th,  the  folio  of  the 
Journal  from  which  we  take  the  sum ;  and  in  the  5th  column  we  write 
the  amounts — $1,080,  and  $1,230. 

This  done,  we  allot,  for  the  account  of  "  Bills  Payable,"  folio  6,  where 
we  open  it  by  writing,  as  before,  its  name  and  the  abbreviations  "  Dr." 
and  "  Cr."  Bills  Payable  standing  as  creditor  in  the  Journal  entry  for 
$2,310,  we  make  entry  on  the  creditor  side  of  the  account,  by  writing  in 


^^ 


24 


POSTING. 


TRIAL  BALANCE. 


25 


11 


the  first  columns  the  date ;  in  the  3d,  the  preface  of  the  opposite  part 
of  the  Journal  entry,  "  By  Sundries ;"  in  the  4th  column,  the  folio  of  the 
Journal  from  which  we  take  the  sum ;  and  in  the  5th,  the  amount  for 
which  Bills  Payable  ought  to  be  credited — $2,310. 


6     Store-Fixtures 
2  To  Cash 


Journal — January  7. 
Dr. 


.'$300  00 


To  Post  the  above  Entry. — This  entry  varies  from  the  others,  t>e- 
cause  it  consists  of  only  one  debtor  and  one  creditor— the  others  have 
more.  We  open  an  account  for  the  debtor  (Store-Fixtures)  on  folio  6, 
and  write  on  the  debtor  side  the  date  and  "  To  Cash,"  the  page  of  the 
Journal,  "1."  and  the  amount— "  $300."  Cash,  in  the  above  entry, 
is  the  creditor;  therefore  we  turn  to  the  Cash  account,  already 
opened  on  folio  2,  and  write,  on  the  creditor  side,  the  date  in  the 
Ist  and  2d  columns,  •  "  By  Store-Fixtures"  in  the  3d,  the  page  of  the 
Journal  in  the  4th,  and  the  amount  in  the  5th— $300.     This  done,  the 

entry  is  posted.  -it 

We  must  never  forget  to  place  the  folios  of  the  accounts  m  the  Leger 
against  their  names  in  the  Journal,  when  they  have  passed  into  the 
Leger. 

The  following  Journal  entry,  the  last  the  posting  of  which  requires 
explanation  (all  others  being  posted  in  the  same  manner  as  those  al- 
ready explained),  we  find  in  the — 
t 

Journal — January  16. 

4     Merchandise  Dr.  To  Sundries.. $3,200  00 

2  ToCash «2,000  00 

4  To  Merchandise 1>200  00      3,200  00 

To  Post  the  above  Entry.— Turn  to  the  account  of  Merchandise, 
folio  4,  and  on  the  debtor  side  write,  as  before,  in  the  Ist  and  2d  col- 
umns, the  date ;  in  the  3d,  the  preface  of  the  opposite  part  of  the  Jour- 
nal entry,  «  To  Sundries ;"  in  the  4th  column,  the  page  of  the  Journal  j 
and  in  the  last  columns,  the  amount  for  which  Merchandise  ought  to  be 
charged  or  debited — $3,200. 

The  creditors  in  the  above  entry  are  Cash  and  Merchandise,  which 

*  Note.— The  word  "By"  does  not  appear  in  the  Journal  entries,  because 
the  names  of  the  debtors  are  always  placed  before  the  creditors.  If  their  p(> 
sitioQ  was  reversed,  the  %  would  appear,  and  not  the  ^f-.  ^1  we  make  a 
Journal  entry  with  the  debtor  first  in  order,  the  /orm  would  be  difi-erent,  but 
the  meaning  would  be  the  same.     Thus,  in  the  entry  of  January  7— 

^"'   By  Store-Fixtures ":" ^300  00 

This  is  the  way  the  entry  reads,  when  we  post  it  into  the  Cash  account  in 
the  Leger. 


"I 


are  carried  to  the  Leger  by  writing  on  their  creditor  sides — ^in  the  first 
two  columns,  the  dates ;  in  the  3d,  the  opposite  part  of  the  Journal  en- 
try, "  By  Merchandise ;"  in  the  4th,  the  page  of  the  Journal  the  entry 
comes  from ;  and  in  the  last  columns,  the  amounts  for  which  they  should 
be  credited. 

In  opening  accounts  in  the  Leger,  we  give  to^ach  a  certain  space, 
according  to  the  business  that  we  think  we  may  have  with  the  person  or 
property ;  and  we  generally  leave  some  forty  or  fifty  of  the  beginning 
pages  of  the  Leger,  for  private  accounts,  such  as  Cash,  Merchandise, 
Bills  Receivable,  Bills  Payable,  Discount  and  Interest,  Commission, 
Profit  and  Loss,  &c. 

Having  Journalized  and  Posted  the  transactions,  or  entries,  of  the 
month  of  January,  we  will  now  proceed  to  make  out  a  Trial  Balance. 


TRLA.L  BALANCE. 

The  Trial  Balance  is  a  collection  of  all  the  balances  that  appear  in 
the  Leger,  exhibited  in  two  columns ;  the  debtor  balances  in  one  col- 
umn, and  the  creditor  balances  in  the  other. 

In  proceeding  to  make  the  Trial  Balance,  first  add  and  subtract  the 
columns  of  every  account  in  the  Leger.  Do  this  with  a  pencil,  in  small 
figures,  setting  the  balance,  or  diflerence,  on  the  side  that  is  the  larger. 
Next,  we  copy  off  the  said  balances  of  the  accounts  on  a  sheet  of  paper, 
putting  the  debtor  balances,  with  their  names,  on  the  debtor  side,  and 
the  creditor  balances  on  the  creditor  side — in  the  following  maimer : — 


Dr. 


Balances  of  January  30,  1850. 


Cb. 


2 

4 
5 
6 
10 
11 
12 
13 


Cash 

Merchandise 

Bills  Receivable , 
Store-Fixtures . . 
C.  Lawrence... . 
O.  Otis  &  Co.... 

S.  H.  Lovell 

W.Blakeley.... 


$33,205 
5,515 
8,61G 
300 
140 
200 
250 
200 


48,426 


00 
00 
00 
00 
00 
00 
00 
00 


00 


1 
1 
6 

7 


T.Blanchard 

C.C.  Marsh 

Bills  Payable 

Disco  tmt  and  Int*st. 


$26,920 

16,705 

4,680 

121 


48,426 


00 
00 
00 
00 


00 


26 


TRIAL  BALANCE. 


JOURNALIZING. 


If  the  entries  in  the  Journal  have  been  posted  correctly  to  the  Leger, 
and  the  additions  and  subtractions  have  been  made  without  eiTors,  the 
amounts  of  both  columns  will  be  equal.  On  the  contrary,  if  the  totals 
are  not  equal,  it  is  certain  evidence  that  there  are  errors,  which  we  must 
endeavor  to  find  and  correct.  Whatever  may  be  the  nature  of  the  error. 
It  may  be  found  by  Referring  to  the  Journal  to  ascertain  if  the  Sundries] 
m  every  entry,  are  added  correctly,  or  equal  the  amounts  extended  into 
the  last  column ;  because,  if  the  sums  of  the  debtors  and  creditors  do 
not  equal  each  other  in  the  Journal,  they  can  not  be  equal  in  the  Leger. 
See,  also,  if  all  the  sums  have  been  posted,  or  carried  to  the  Leger  cor- 
rectly ;  and  next,  complete  the  examination  by  re-adding  and  re-sub- 
tracting all  the  accounts  or  columns,  to  ascertain  if  the  balances  are  cor- 
rect. If  the  first  examination  does  not  produce  the  result  desired,  it 
must  be  repeated  until  the  debtor  and  creditor  columns  of  the  Trial 
Balance  come  out  equal.  When  completed,  fold  it  up,  and  endorse  it, 
*  Trial  Balance  of  January  30,  1850." 

Note.— It  will  be  well  not  to  leave  the  Trial  Balance  in  the  counting-room, 
ATith  the  books,  because,  in  case  of  fire,  and  the  destruction  of  the  books,  it 
w^ould  be  almost  as  valuable  to  us  as  the  books  themselves. 

The  Trial  Balance  proves  the  three  following  important  operations! 
but  no  other,  viz. : — 

1st.  It  proves  that  the  sums  are  carried  from  the  Journal  to  the  Leger 
correctly. 

2d.  That  the  additions  of  the  accounts  in  the  Leger  are  correct ;  also 
those  in  the  Journal. 

3d.  That  the  balances  (or  differences)  of  the  accounts  in  the  Leger 
have  been  calculated  correctly. 

^  Of  course,  a  Trial  Balance  does  not  prove  Journalizing.  The  prin- 
ciple of  the  Trial  Balance  is  this :  In  every  Journal  entry,  the  debtor 
and  creditor  sums  equal  each  other ;  therefore,  if  those  same  sums  are 
transferred  correctly  to  the  Leger,  it  is  evident  that  the  debitor  and 
creditor  balances  taken  from  the  Leger,  ought  also  to  be  equal,  there 
being  no  other  sums  in  the  latter  than  those  contained  in  the  former,  and 
whatever  is  debtor  in  the  Journal  is  debtor  in  the  Leger. 


BUSINESS  OF   FEBRUARY: 

ing  Good.-Ao«p^;g^Dr!ftr£?<S.  Tol»  « 'l!^^',^'"'?  "^t  Compromise- Ji^'S! 

THE   RULE. 
Every  person  or  object  that  owes  us,  is  debtor. .  n. 

livery  person  or  object  that  we  owe,  is  creditor      r 

Apply  this  rule,  thus :  Read  and  reflect  wpH  nn  tT,^  «• 

mn  n' '^w  r*""  "' •     A"'' write  the  answer  down  as  Dr 

Who  or  what  do  we  owe  ?    And  write  the  answer  down  as .' ! .' ." .'  .'cn 

Day-Book — February  S. 

The  liansaction  of  this  date  in  the  Dav-Book  <nv^«  fi,^  «•  ii      • 
try  in  the  Journal :—  ^  ^  "*  '"^  following  en- 

TV  m      u     J-  ^'^'         ^°  Sundries.. $1,080  00 

I  o  Merchandise «/;<;n  aa 

"   Cash....  ^tf2  "" 

"  ^■-- ■••■•^■•■•■■'-■•■••■■-■:::-::::J5j^  mso oo 

BifnX'rw:;e~Mturer"hirc:  p:l'"V^^  ^^^  ''^^^^^  •'^  «- 

assumed  by  the  firm ;  K:;^;^^::'';:^^^^^^^^^  «'«''ts 

our  note;  we  mean  notes  of  which  we  are  th^  Z^Z  *  ^^  f "  "^^  ^^^ 

signed,  and  not  notes  belonging  to  us  as  ot  proomVT  l^r'' "f  •■"" 
der  the  name  of  Bills  Payable   is  rlpht^t    kl  P'^^P^^yO     The  note,  un 
ing  paid  it  what  we  owed  it'     hT-I      '       -1"'^  "  ""'^^  "^'  ^^  '"v- 

tributmg  to  pay  our  note  for  us  ^^®™  ^^^  <^^°- 

a  b^^c'hTf  riri^trd  wSrrrl^ttsT  ••-d'^'^s  t  --"'- 

it  debtor  when  it  owes  us,  ^nAc^lZXh:^Z:::Tln^rf'''^ 
action,  Discount  paid  a  part  of  m.r  n^tl  <•  T    S.    °  ''"*  ^'"^"8- 

and  it  is  a  creditoV  f,.,-  «/fiS  •  Di,co„mT,,       T'  '\^^^V^  ^^  °"«  «' 

v^.oo  .  discount  has  produced  us  $4.68. 


as 


JOURNALIZING. 


It 


II 


Note.— The  transactions  of  Febniary  are  not  as  simple  as  those  of  January. 
If  the  reader  finds  it  difficult  to  understand  them,  he  had  better  rejoumalize 
January  before  he  proceeds  with  February. 

Day-Book — February  2  (2d  entry  of  thi«  date). 

The  second  transaction  of  this  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

Store- Expenses  Dr- 

To  Cash «65  00 

Elucidation. — The  various  incidental  expenses  of  the  store,  such  as 
rent,  clerk-hire,  advertising,  fuel,  gas,  &c.,  form  a  branch  of  our  busi- 
ness, v^rhich  we  call  "  Store-Expenses." 

Store-Expenses  are  debtor,  because  they  owe  us  what  they  have  cost 
us.  We  are  debtor  to  Cash  for  having  paid  the  amount  of  those  ex- 
penses for  us ;  therefore,  that  branch  of  our  business  called  Store-Ex- 
penses is  the  debtor,  and  Cash  is  the  creditor. 

Day-Book — February  4. 

I 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en 

try  in  the  Journal : — 

§       Shipment  to  New  Orleans  Dr.        To  Sundries . .  %\  ,822  22 

To  Merchandise $1,722  22 

Cash 100  00    1,822  22 


it 


Elucidation. — The  property  shipped  in  this  transaction  owes  us  for 
the  amount  it  has  cost  us  in  its  present  situation,  which  is  $1,822.22. 
The  consignees  in  New  Orleans  do  not  owe  us,  because  we  have  not 
sold  the  goods  to  them :  the  goods  are  still  ours,  being  merely  sent  to 
them  to  be  sold  for  us.  No  one  can  o\ye  us  for  anything  which  is  ours ; 
there  must  be  a  change  in  the  ownership.  ,   i    . 

We  owe  to  Merchandise  and  Cash  for  having  contributed  their  sums 

in  making  up  the  shipment.  ^       •      i       •  i      r 

When  the  property  shipped  belongs  to  us,  we  give  it  the  title  ot 
"  Shipment"  to  such  a  place,  or  "  Consignment"  to  such  a  person. 

Day-Book — February  9. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
tgN  in  the  Journal : — 

Sundries  "         I>r.     To  William  Blakeley.. $200  00 

Cash ^100  00 

ProfitandLoss iOO_00     200  00 

Elucidation.—"  Profit  and  Loss"  is  the  name  which  our  business  re- 
ceives in  our  books.  Our  business,  in  this  transaction,  goes  against  us,  and 
causes  our  losing  $100 ;  therefore  it  owes  us,  and  consequently  is  debtor. 

Cash  is  debtor,  because  in  it  W.  Blakeley  has  paid  us  half  the  debt  he 
owed. 


JOURNALIZING.  29 

W.  Blakeley  is  creditor,  because  we  owe  him,  he  having  paid  us  what 
he  owed,  and  we  having  accepted  half  of  his  debt  for  the  whole.  The 
sum  that  Blakeley  owed  us  befcye,  Profit  &  Loss  and  Cash  owe  us  now. 

Day-Book — February  12. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  followino-  en- 
try in  the  Journal : —  ^ 

Merchandise  Dr.  To  Sundries- .$1,240  00 

To  Charles  Lawrence $  140  00 

"   Bills  Receivable 1,000  00 

"   Cash 100  00    1,240  00 

Elucidation. — Merchandise  has  cost  us  $1,240,  for  which  it  owes  us; 
and  therefore  it  is  debtor. 

C.  Lawrence  is  creditor,  because  we  owe  him  for  having  drawn  on 
him  for  $140,  which  he  vrill  pay ;  if  not.  the  draft  will  be  returned  to 
us,  and  another  entry  will  be  required. 

We  say  nothing  of  the  draft,  because  it  is  not  in  our  favor,  nor  is  it 
against  us ;  we  do  not  owe  it,  nor  does  it  owe  us. 

The  note  which  we  held  against  O.  Otis  &  Co.,  and  which  owed  us, 
has  now  paid  us  what  it  owed,  it  having  paid  for  us  part  of  Haven  & 

Smith's  bill ;  therefore  we  must  credit  the  note  under  its  former  name 

«*  Bills  Receivable." 

Cash  is  creditor,  because  we  owe  that  species  of  property  for  paying 
the  sum  of  $100  for  us  toward  this  purchase. 

Day-Book — February  12  {2d  Entry  of  thig  date). 

The  second  transaction  of  this  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

William  Blakeley  «.        Dr. 

To  Bills  Receivable $.500  00 

Elucidation. — Mr.  Blakeley  is  debtor,  because  he  owes  us  for  the 
aniount  of  his  note  which  we  hold  against  him,  which  is  due  and  not 
paid. 

The  note  is  creditor,  because  its  time  having  expired,  it  has  paid  us 
by  giving  us  a  new  claim  on  its  author— W.  Blakeley. 

NoTE.—When  notes  become  due  and  remain  unpaid,  the  best  way  is  to 
charge  their  amounts  to  their  drawers,  or  those  who  ought  to  pay  them ;  for 
It  is  then  that  those  parties  owe  us.  Before  the  notes  were  due,  we  could  de- 
mand nothing  of  the  persons ;  the  notes  alone  were  responsible. 

Day-Book — February  13. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  .Journal : — 


30  JOURNALIZING. 

Merchandise  Dr.  To  Sundries.  .$6,633  11 

To  Walter  Howard $4,888  89 

"    Bills  Payable .• 1,222  22 

**    Cash 422  00    6,533  11 

Elucidation. — Merchandise  owes  us  for  the  amount  it  has  cost  us, 
which  consists  of  its  first  cost  in  London,  the  amount  of  duties,  and  the 
freight — the  last  two  being  paid  here. 

W.  Howard  is  creditor,  because  we  owe  him  for  the  amount  of  the 
goods  he  sends  to  us  according  to  our  request. 

In  changing  the  c£l,100  sterling  to  dollars,  the  dCl  is  calculated  at  the 
old  par  value — $4.44.  We  agree  with  many  in  thinking  that  a  value 
nearer  the  true  one  should  be  used  in  transactions  involving  English 
money ;  but  it  is  difficult  to  change  a  custom.  The  present  par  value 
of  the  pound  sterling  is  $4.84.    (See  calculations  at  the  end  of  this  book.) 

Bills  Payable  are  creditor,  because  we  owe  our  notes  which  we  have 
issued  against  us,  in  payment  of  the  duties :  the  notes  pay  the  duties 
for  us. 

Note. — Formerly,  the  revenue-law  allowed  credit  on  duties,  and  notes  or 
bonds  were  taken  at  the  customhouses ;  but  the  duty  on  imports  is  now  paya- 
ble in  cash  only. 

To  Cash  we  owe,  because  it  has  paid  the  freight  and  charges  on  the 
goods  for  us.     Cash,  therefore,  is  a  creditor. 

Day-Book — February  13  (2d  Entry  of  this  date). 

The  second  transaction  of  this  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

Sundries  Dr.  To  Sundries. 

Bills  Receivable $251  37 

Profit  and  Loss 250  00  $501  37 

To  William  Blakeley 500  00 

•  "   Interest 1  37     501  37 

Elucidation. — ^First,  read  the  transaction  carefully,  with  a  view  to 
find  what  owes  you  ;  and  whatever  you  think  owes  you,  write  it  down 
as  Dr.  Then  read  again,  to  find  what  you  owe ;  and  write  that  down 
as  Cr. 

The  draft  or  order  drawn  on  S.  H.  Lovell,  and  accepted  (agreed  to), 
owes  us  for  the  amount  it  shows,  including  the  $1.37  for  interest.  Our 
claim  for  the  $251.37  consists  in  the  draft,  which  must  owe  us  until  its 
time  expires ;  Lovell  may  then  owe  us,  but  he  does  not  now. 

Our  business,  under  the  name  of  Profit  and  Loss,  owes  us,  because 
it  has  been  the  cause  of  the  loss  we  have  sustained  in  this  settlement 
with  W.  Blakeley. 

We  owe  to  Interest,  or  Interest  is  a  creditor,  because  that  branch  of 
our  business  has  prodnred  us  $1,37,  which  sum  is  included  in  the  note. 


JOURNALIZING.  jj 

Wm.  Blakeley  is  creditor,  because  we  owe  him  for  paying  us  what  he 
owed-the  balance  of  his  account.  He  has  paid  us  inVll,  Although  we 
have  received  only  half,  because  we  have  accepted  that  half  for  t^ 
whole;  he  therefore  must  be  credited  for  what  he  owed  us. 

Day-Book — February  16. 

.ry?nTrut°aI  :°I*"  '"'  '"  *^  ^"y"^""''  ^ives  the  foUomng  en- 
Walter  Howard  D,.^ 

To  Bills  Payable ^44^^  ^^ 

Elucidation.— In  accepting  this  drafl  we  become  responsible  for  its 
amount;  therefore  W.  Howard  owes  us.  To  draw  on  ^s  fs  to  order 
us  to  pay  a  certain  sum ;  and  accepting  the  draft  is  agreeincr  to  do  so 

Bills  Payable,  the  name  given  to^he  draft  that  we  fave  accepted  are 
creditor,  because  we  owe  the  draft  which  we  have  issued  agaTnsf  us'and 
which  we  shall  pay  at  its  maturity,  in  whosever  possession^' may  be 

,^?A°'^^'^^^  ^^^^P'  ?  ^^^^*  ^^  ^0  ^"te  your  name  across  its  face.    If  the  drafr 
reads  so  many  days  after  sight,  the  date  should  be  with  the  si^aJe,  thus '^^ 

"Accepted,  February  16,  1850. 

"Blanchaed  &  Marsh." 

Day-Book — February  17. 

Bills  Payable  Dr, 

To  Merchandise *. ^^g^^  ^^  . 

ELuciDATioN.-The  note,  in  this  transaction,  was  issued  by  us  some 
unae  since,  and  held  us  responsible;  now  we  have  paid  it,  it  owes  us 
and  becomes  our  debtor.  ^  '  ^^' 

th^T^^^^^  ''  the  property  in  which  we  paid  the  amount  of  the  note  • 
therefore  we  owe  it  for  paying  our  note  for  us.  ' 

Note.— We  have  said,  that  when  we  pay  a  person  a  sum  that  we  owed  him 
he  owes  us,  or  becomes  our  debtor ;  so,  when  we  nav  our  no L  fnrTifo         ' 
reason  it  owes  us,  or  becomes  our  debtor.  ^^        ^'^'  ^""^  ^^^  ^™^ 

Day-Book — February  20. 

Walter  Howard                          Dr.            To  Sundries.. «2,974  29 
To  Merchandise ^2,730  00 

.,   S^''-.--. 160  15 

Commission 84  14   2;974  29 

Elucidation.— W.  Howard  owes  us,  because  the  goods  were  shinn.,^ 
at  hiB  request,  or  according  to  his  order,  he  thereforl  Ts  deUor.      '^'^ 


i 


i 


32  JOURNALIZING. 

To  Merchandise  we  are  indebted,  because  we  have  sold  it,  and  it  has 
produced  us  $2,730,  for  which  amount  Howard  owes  us 

To  Cash  we  are  indebted,  because  it  paid  the  amount  of  insurance 

and  other  expenses  for  us.  ,  .    ,^,  .^ i  v^nnntuh 

To  Commission,  as  a  branch  of  our  busmess.  we  are  indebted,  because 

it  produces  us,  in  this  transaction,  $84.14. 

The  amount  of  the  creditor  sums  in  the  above  entry  ^quals  the  debtor 

sum-that  is,  the  sum  that  Howard  owes  us      As  we  have  before  said. 

the  debtor  and  creditor  sums  will  and  must  always  be  equal. 

Day-Book — February  21. 
The  transaction  of  this  date  in  the  Day-Book  gives  us  the  following 
entry  in  the  Journal : — 

Merchandise                                      ^^'  ..$1,530  00 

To  Merchandise 

E.»c.DAT.ON.-There  are,  in  this  transaction,  two  kinds  of  merchat. 
dise ;  one  we  have  bought,  and  f  othe^we  ha^e  s^d      That  wh,^^^^^^^ 

IroWrX' r  haT  ;i:a:  "on:"^d  ■»  aehto.  and  the 
Other  is  creditor. 

Dav-Book— Febboaby  21  (2d  Entry  of  tM.  d.to). 
The  transaction  of  this  date  in  the  Day-Book  gives  us  the  following 
entry  in  the  Journal : — 

Bills  Receivable                              '^'  ^gOO  00 

T  o  Bills  P  ay  able 

for  the  sum  it  is  drawn  for. 

S)^Sorse1b"M?.  Bernard,  and  he  endorses  for  us. 

Day-Book— Febbuabv  23. 

The  transaction  of  this  date  in  the  Day-Book  gives  us  the  following 

entry  in  d>e  Journal :-  To  Merchandise.  .«1.620  00 

S^"^^"   .    „  $500  00 

Bills  Receivable _      120  00 

Cash 1  000  00    1,620  00 

James  Truman ' — 

EL.cn>ATioN.-Here,  as  there  are  more  than  one  debtor,  we  head 

them  with  the  word  "  Sundnes." 


JOURNALIZING. 

Tr^ill"^^  Tl''•^^^^"  '^^  '''^1  ^^^^"  '^  '^^  "^^^^  t^at  we  hold  against  J. 
Iruman.     This  note  ow€*  ««  $500. 

Cash  owes  us  for  the  amount  paid  to  us  in  that  kind  of  property. 
J.  Truman  owes  us,  because  the  balance  of  the  bill  of  goods  sold  to 
mm  remains  unpaid.  %  e     **°  °^^^  w 

«3''  ^f  *^^^!;^^«e  we  acknowledge  ourselves  indebted,  because  it  has 
produced  us  the  sum  of  $1,620. 

Day-Book— February  24. 

en^JlnTeTo^r::;a°l 'l'"  ^"^  '"  "'  ^'^y^'""'  ^^^^  ^  *«  «'"°-"g 

Sundries  Dr.     To  Bills  Receivable.. «2,000  00 

k;       •■• «1,969  00 

^'«=<""" 3100    2.000  00 

;s|e:^-Th^\?„?Scirrn:^^^^^^^ 

Elucidation.— Cash  owes  us,  because  the  sum  the  bank  has  naW  ... 

Th^'Zl  l'^  ''"•j""'  '?  *^  transaction.  $31 ,  therefore  it  owes  us 
,J, nT.  t       ^       P'"^  "l*S  """^  ''  '"'^^ ;  therefore  it  is  a  credkor    Al 

Day-Book— February  25. 
en5ln?hrjoi:'r:af:l'''  ""''  '"  *«  ""^y^^  g-"  -  *e  following 

Schooner  J^ephine  Dr.  To  Sundries.. $5,000  00 

To  Walter  Howard $2.228  22 

..    Exchange ^^  .^g 

"  2,600  00   5,000  00 

cosf u"T5:o"o~~''''  "'""'"''^  °"^''  -^  ^  <i«'"°''  >— e  ^he  has 
$2^2  ir    T^'^""  *°  ^-  Howard,  because  we  have  drawn  on  him  for 

Sf pay'ir.^^rrmPru";  '^ "  "'•^^^  •^'-  "^  ---  -^ « -rf"- 
ted^:^y:h-i:::^ -ru:$'5r.^r^:;^  tstbrf 

exchange,  at  a  premium,  which  we  consider  a  ^in  Js?ng  from  the 


34  JOURNALIZING. 

advantageous  position  of  funds.     The  premium  goes  to  Capt.  Davis,  in 
part  payment  of  the  schooner. 

Cash  is  creditor,  because  we  owe  it  as  a  property  for  pavintr  nan  of 
the  $5,000.  ^  J    bf 

Note  1.— Sometimes  the  gain  or  loss,  arising  from  the  sale  of  drafts  or  bills 
of  exchange,  belongs  to  the  one  who  draws,  and  sometimes  to  the  party  drawn 
on,  or  remitted  to :  this  depends  on  who  placed  the  funds  to  draw  against,  and 
other  circumstances.  In  this  series  of  transactions,  we  shall  suppose  the  pre- 
mmm,  or  discount,  to  be  the  gain  or  loss  of  the  drawer,  unless  otherwise  ex- 
pressed. 

Note  2.— It  should  be  understood  that,  when  we  see  it  stated  that  exchange 
on  England  is  at  8  or  9  per  cent,  premium,  it  is  really  only  about  par. 
The  premium,  being  calculated  on  the  old  par  value  of  $4.44  to  the  £,  must 
include,  under  the  name  of  premium,  the  difference  between  the  nominal  value 
($4.44)  and  the  true  value  ($4.84)— about  40  cents. 

Day-Book — February  26. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

William  Evans  Dr. 

To  James  Truman $1,000  00 

Elucidation. — ^We  receive  an  order  at  sight  on  Wm.  Evans,  who 
accepts  but  does  not  pay  it ;  and  the  order  being  due,  it  is  charged  in 
account  by  mutual  consent.  Evans  owes  us,  because  the  order  is  due 
and  not  paid. 

To  J.  Truman  we  owe  for  the  amount  of  the  order  he  has  given  iis 
on  W.  Evans. 

Note.— We  see  in  this  transaction,  also  in  the  one  of  the  25th,  an  impor- 
tant paper  received  in  one  case,  and  delivered  in  the  other,  which  makes  no 
part  of  the  Journal  entry :  the  reason  is,  that  these  papers  do  not  owe  us,  nor 
do  we  owe  them.  Do  not,  therefore,  trouble  yourself  with  any  such  rule  as. 
"  What  you  receive  is  debtor  to  what  you  give." 

Day-Book — February  27. 

The  transaction  of  this  date  in  the  Day-Book  gives  the  following  en- 
try in  the  Journal : — 

Shipment  to  Port  au  Prince  Dr.         To  Sundries-  .$3,908  00 

To  Merchandise $1,200  00 

"   Bills  Payable 2,190  00 

"   Charles  Lawrence 288  00 

*•   Schooner  Josephine 230  00    3,908  00 

Elucidation. — The  shipment  or  consignment  owes  us,  because  it  has 
cost  us  the  amount  of  the  variou?  items  of  which  it  is  composed. 

To  the  creditors,  being  more  than  one,  we  give  the  preface  of  "  Sun- 
dries." 

H.  B.  Walker  &  Co.,  to  whom  the  goods  are  consigned,  do  not  owe 
us,  because  the  goods  aie  still  ours. 


TRIAL  BALANCE. 


35 


To  Merchandise  we  are  indebted  for  contributing  toward  the  ship- 
ment the  sum  of  $1,200— which  goods  are  taken  from  our  store. 

To  Bills  Payable  we  owe  for  the  amount  of  our  note  given  to  Dallet 
&  Co.,  in  payment  of  our  purchase  of  them. 

To  our  schooner  we  owe  for  the  value  of  the  freight  (calculated  in  ad- 
vance) on  the  goods,  which  she  has  produced  or  saved  us. 

Day-Book — February  28. 

The  first  transaction  of  this  date  in  the  Day-Book  gives  the  following 
entry  in  the  Journal : —  =»  s 

Shipment  to  Port  au  Prince  Dr.  To  Sundries.  .$201  56 

To  Bills  Payable $  81  56 

"   Cash 120  00     201  56 

Elucidation.— The  shipment  owes  us,  because  it  has  cost  us  for  the 
insurance,  and  for  various  expenses  in  shipping  the  goods. 

Bills  Payable  are  creditor,  because  we  owe  our  note,  given  to  the  in- 
surance company  in  payment  for  the  premium  or  cost  of  insurance. 

Cash  18  creditor,  because  we  owe  it  for  paying  for  us  the  expenses. 

Day-BooK — February  28  (2d  Entry  of  this  date). 

The  second  transaction  of  this  date  in  the  Day-Book  gives  the  follow- 
ing entry  in  the  Journal : — 

Schooner  Josephine  Dr. 

'^^Cash ^26  00 

ELUcroATiON.— The  insurance  is  an  expense  on  the  schooner,  and  she 
owes  us  for  it ;  therefore  she  is  debtor. 

Cash  is  creditor,  because  it  was  cash  that  paid  the  insurance  for  us. 


TRIAL  BALANCE. 

Having  Journalized  the  transactions  of  February,  the  pupil  will  now 
proceed  to  post— that  is,  to  enter  in  the  Leger  from  the  Journal,  as  ex- 
plained at  the  end  of  January.  When  the  posting  is  finished,  he  will 
make  a  Trial  Balance.  In  adding  the  accounts  in  the  Leger,  the  sums 
of  January  must  be  mcluded.  The  following  is  the  Trial  Balance  of 
the  Leger  at  this  date : — 


30 


Dr. 


TRIAL  BALANCE. 


Balances  of  February  28,  1850. 


JOURNALIZING. 


37 


Cr. 


2 
4 
5 

6 

7 

8 

8 

11 

12 

13 

16 

16 

Cash 

$31,120 

2,905 

8,987 

300 

4,951 

65 

350 

200 

250 

307 

1,822 
4,109 

53 
89 
37 
00 
00 
00 
00 
00 
00 
62 

22 
56 
19 

1 
1 
6 
7 
9 
9 
10 
14 

T.Blanchard 

C.C.  Marsh 

Bills  Payable 

Discount  and  Int'st. 

Commission 

Exchange 

C.  Lawrence 

W.Evans 

$26,920 

16,705 

10,838 

96 

84 

177 

288 

260 

00 
00 
22 
05 
14 
78 
00 
00 

• 

19 

Merchandise 

Bills  Receivable 

Store-Fixtures 

Schooner  Josephine 

Store-Expenses  . . . 

Profit  and  Loss  . . . 

O.  Otis  &  Co 

S.H.Lovell 

W.Howard 

Shipment  to  New  > 
Orleans \ 

Shipment  to  Port  } 
au  Prince \ 

55,369 

55,369 

BUSINESS  OF  MARCH: 

Embracing  Entries  of  twenty-six  Transactions,  relating  to — Delivering  per  Order— Receiving 
Consignments— Paying  Charges  on  Consignments— Selling  Consignments — Selling  at  Auc- 
tion— Collecting  Notes  and  Acceptances — Receiving  Notes  with  Interest — Allowing  for 
Damages  in  Sales — Paying  Acceptances — Closmg  Consignments— Rendering  Account-Sales 
-—Receiving  Account-Sales — Buying  in  Joint-Account — Selling  in  Joint-Account — Receiv- 
ing our  Note  before  Due— Paying  Money  to  a  Partner— Buying  Bills  of  Exchange — Closing 
Account  of  Sales  in  Joint- Accoont — Rendering  Account-Sales  of  Merchandise  in  Joint-Ao> 
coiut 

THE  RULE. 

Every  person  and  thing  that  owes  us\s Dr. 

Every  person  and  thing  that  we  owe  is Cr. 

The  best  method  of  applying  the  above  rule,  is  the  following : — 
First,  understand  welljthe  nature  of  the  transaction,  make  yourself 

familiar  with  its  details,  consider  yourself  the  person  that  performs  it 

or  to  whom  it  occurs,  and  then  ask  yourself — 

Who  or  what  owes  me  ?    And  write  down  the  answer  as  the Dr. 

Who  or  what  do  I  owe  1    And  write  down  the  answer  as  the Cr. 

The  sums  that  belong  to  these  answers  are  those  that  the  person  or 
thing  in  reality  owes  us,  and  those  that  we  owe. 


Day-Book— Transaction  op  March  2. 

ELUCIDATION.--C.  Lawrence  owes  us  in  this  transaction,  because  on 
his  order  we  delivered  the  goods  to  W.  Blakeley. 

Merchandise  is  creditor,  or  we  owe  to  Merchandise,  because  it  nm 
duces  us  value  to  the  amount  of  $288.  because  it  pro- 

thn^L?  "^^P^y  ^  ^^^^ai"  «""^  by  order  of  any  person,  it  is  evident  that 

promise  to  pay  us  its  sum  at  any  future  time. 

Day-Book— 2d  Transaction  op  March  2. 

The  transactions  relative  to  which  no  exnlannM'r»«o  «,.«    • 
e  dered  sufficiently  simple  not  ,o  X^CtZ^l^iJ'Z'Z^^ 
studied  with  attention  those  of  January  and  Februiy  ^^      * 

DAy-BooK — Transaction  op  March  3 

Cash  IS  creditor,  because  in  it  we  paid  the  freight  a^nd  dmies 

siZ  to"  ""mimtF."  """"^^  '"'  ""^  ="<'""'  °f  "'«  g-ds  he  con- 
signs  lo  us  (9d,im),  because  we  do  not  owe  him  that  c,™      ti,  j 

are  still  his;  we  have  neither  bought  nor  orferS  them Tn'^  3  ^"^^ 
owe  a  person  for  what  remains  h.l  When  wrhave  ^old  .hT  ''*""°' 
ment  and  rendered  to  him  an  account  of  thTsaCthen  we  ma^Te" 
him  the  net  proceeds,  but  not  before.  ^       ® 

Day-Book— Transaction  op  March  5 

the'^etreTashTde-bt:":  ""^  ^^  "'^^  ^--^^  '-«  ac:5a„ce  owed; 
The  acceptance  haVing  paid  us  what  it  owed  us,  becomes  a  creditor. 

Dav-Book— 2d  Transaction  op  March  5. 

!«  f7n"n''"'*J'r-~^''->'Tf  °f  O.  Otis  &  Co.'s  account,  in  our  favor 
IS  8700,  which  is  considered  due  in  cash  •  therpfA~  ;,.„••  ' 

at  sixty  days,  it  should  be  drawn  for  t^e  sumThfr^i,  be^dTe'^rxV^C 

crelt:* W  '   Thn  *°""   ^^'"''f  •"^«^-'  coirespondinrtol 
credit  or  time.     The  note  owes  us  for  the  said  balance,  and  also  for  th^ 

anwunt  of  mterest  j  for  both  of  which  it  is  drawn  or  written. 

Interest  is  creditor,  because  we  owe  it  for  producing  us  $7.35. 


38 


JOURNALIZING. 


I 


Note.— When  Interest  is  in  our  favor,  it  is  a  creditor,  because  we  owe  it  for 
the  value  it  produces.  When  it  is  against  us,  it  is  a  debtor,  because  it  owes  us 
lor  the  sum  it  costs  us. 

To  O.  Otis  &  Co.  we  are  indebted  for  the  balance  of  their  account, 
which  they  have  paid  us  in  their  note ;  for  which  balance  the  note  is 
now  our  debtor. 

Day-Book — Transaction  op  March  7. 

Elucidation. — In  this  transaction,  we  agree  to  an  allowance  in  favor 
of  C.  Lawrence,  on  a  purchase  of  a  former  date.  The  amount  of  the 
allowance  we  do  not  pay ;  therefore  we  owe  him,  and  he  becomes  a 
creditor  for  the  same. 

Day-Book — Transaction  op  March  9. 

Elucidation. — The  acceptance  now  paid  received  the  title  of  "  Bills 
Payable,"  when  we  accepted  it  (February  16),  since  which  time  it  has 
stood  out  against  us  as  our  note.  This  acceptance  now  owes  us,  be- 
cause we  have  paid  it  what  we  owed  it. 

W.  Howard  does  not  owe  us  in  this  transaction,  because  the  drafl, 
now  paid,  was  our  acceptance.  At  the  time  we  put  our  name  on  it,  he 
began  to  owe  us,  and  then  became  our  debtor. 

Day-Book — Transaction  op  March  10. 

Elucidation. — Commission  owes  us  nothing  in  this  transaction,  be- 
cause in  reality  we  sell  the  goods  for  only  the  sum  that  we  receive  for 
them— being  the  net  proceeds,  $1,233.27  ;  for  which  sum  Cash  owes  us, 
and  we  owe  to  the  consignment. 

Note.— It  is  not  necessary  to  give,  in  the  Day-Book,  the  particulars  of  the 
quantity,  quality,  and  prices,  of  goods  sold— these  belong  more  to  the  Sales- 
Book  than  the  Day-Book ;  but  as  it  is  not  thought  necessary  to  continue  the 
Sales-Book  beyond  a  few  examples,  the  former  book  is  rendered  more  complete 
by  its  embracing  some  description  of  the  goods  sold,  particularly  when  those 
goods  are  not  ours. 

Day-Book — 2d  Transaction  of  March  10. 

Elucidation. — To  receive  merchandise  to  our  account,  means  that 
we  have  bought  it,  or  taken  it  as  our  own.  And  now,  since  the  olives 
are  ours,  we  give  them  the  title  of  Merchandise ;  and  as  they  owe  us, 
we  call  them  debtor. 

To  the  consignment  we  owe,  because  it  has  produced  us  the  olives, 
or  their  value. 

Day-Book — Transaction  op  March  12. 

Elucidation. — The  merchandise,  or  olives,  sold  to  P.  Harris  in  this 
entry,  does  not  belong  to  the  consignment  of  De  Nones,  having  been 
made  ours  in  a  previous  entry. 


JOURNALIZING.  30 

Day-Book — Transaction  op  March  14. 

Elucidation. — In  order  to  ascertain  the  amount  of  the  sales  of  this 
consignment,  and  to  see  if  it  agrees  with  the  Commission  Sales-Book,  it 
is  necessary  to  post  all  the  sums  belonging  to  the  consignment,  from  the 
Journal  to  the  Leger,  and  to  compare  the  Leger  account  with  the  ac- 
count in  the  Sales-Book. 

The  entry  under  this  date  in  the  Day-Book  shows  that  we  have  made 
an  "  Account-Sales"  of  the  goods  belonging  to  J.  De  Nones,  for  the 
purpose  of  closing  the  account  of  those  goods,  and  transferring  the  bal- 
ance to  accounts  where  it  more  properly  belongs. 

In  Journalizing  this  entry,  we  say  that  we  owe  to  the  following : — 

To  Commission  we  owe,  because  it  is  a  branch  of  our  busi- 
ness, and  which  has  produced  us $215  71 

To  Store-Expenses  we  owe,  because  that  branch  of  our 
business  has  produced  us  the  amount  of  our  charges  for 
storage,  &c • 52  24 

To  Joseph  De  Nones  we  owe  for  the  net  proceeds  of  the 

goods  we  have  sold  for  him 3  531  32 

Amount  that  we  owe 3  799  27 

which  makes  the  balance  of  the  account.         . 

Now,  then,  the  consignment  must  owe  us,  and  become  debtor  for  the 
balance  that  appears  on  its  credit  side,  because  we  divide  said  balance, 
and  carry  it  to  the  credit  of  the  different  accounts  above  expressed.  This 
last  entry,  when  posted,  will  close  the  consignment. 

The  "Account-Sales,"  which  we  render  to  J.  De  Nones,  will  be  found 
among  the  Forms,  at  the  end  of  this  volume. 

Day-Book — Transaction  op  March  16. 

Elucidation. — Lockhart  &  Arrott  owe  us  for  the  amount  of  the  net 
proceeds  of  our  shipment  to  them,  they  having  sent  us%n  account  of  the 
sales  without  remittance  of  funds. 

"  Shipment  to  N.  Orleans"  being  the  title  we  gave  the  goods  when  we 
shipped  them,  we  should  now,  in  speaking  of  that  property,  use  the 
same  name.  Shipment  to  New  Orleans  is  creditor,  because  we  owe  it 
the  sum  it  has  produced  us,  and  for  which  L.  &  A.  are  responsible. 

•■^^^u  *t5^'"®  ^®  ^*^®  *^6  ^™e  transaction  as  that  of  the  previous  entrv 
witn  the  difference  only,  that  in  one  case  we  send  away  an  "  Account-Sales  '» 
and  in  the  other  we  receive  one.  ' 

Day-Book — Transaction  op  March  18. 

Elucidation.— Cash  owes  us  for  the  sum  that  P.  Harris  has  advanced 
to  us ;  and  we  owe  him,  because  we  have  not  yet  used  the  money  for  the 
object  for  which  he  gave  it  to  us. 


p¥f 


I 


40 


JOURNALIZING. 
Day-Book — Transaction  op  March  20. 


Elucidation. — We  give  the  title  of  "  Merchandise  Company  1,"  or 
**  Company  1  Merchandise,"  to  the  flour  which  we  have  bought  in 
joint  account  with  Mr.  Harris — a  name  to  distinguish  it  in  our  books 
from  goods  that  belong  solely  to  us. 

The  flour  does  not  owe  us  for  its  whole  cost,  but  only  for  the  cost  of 
our  half  of  it— $2,000  :  it  is  not  responsible  to  us  for  Mr.  Harris's  half, 
or  what  it  costs  him. 

P.  Harris  owes  us  for  his  part  of  the  purchase,  because  we  paid  for 
his  part  of  the  flour. 

Day-Book — Transaction  of  March  21. 

Elucidation. — The  flour  costs  us  only  half  of  the  amount  received, 
and  it  can  owe  us  no  more  than  our  interest  in  it — $1,187.50.  We  have 
received  twice  that  amount ;  but  Journalizing  is  not  to  show  what  we 
receive  or  deliver,  but  what  are  our  debtors  and  creditors. 

Mr.  Harris  is  creditor,  because  we  owe  him  for  our  half  of  the  flour : 
he  furnishes  our  half  for  us.  Were  we  to  credit  Mr.  Harris  for  all  this 
flour,  we  would  be  making  the  same  entry  as  if  we  had  bought  it  all  of 
him ;  which  is  not  the  case,  because,  it  being  on  joint  account,  half  re- 
mains his.  It  being  in  our  store  makes  no  difierence  in  the  prpprie- 
torship. 

Day-Book — Transaction  op  March  23. 

Elucidation. — In  the  transaction  of  this  date,  we  receive  our  uwn 
note  in  part  payment  for  the  flour ;  and  as  the  note  is  not  due,  we  are 
allowed  discount  for  the  time  it  wants  of  being  due.  Discount  is 
therefore  in  our  favor,  and  must  be  credited  for  what  it  produces  us — 
$9.10. 

Bills  Payable  owes  us  for  the  amount  it  was  drawn  for — $2,100 — al- 
though we  do  not  give  that  sum  for  it,  yet  with  what  we  give  we  pay 
the  whole. 

The  flour,  under  the  name  of  "  Company  1,  Merchandise,"  is  cred- 
itor, because  it  produces  us  $3,000. 

Note. — Accounts  of  merchandise  in  company,  or  in  joint  account,  generally 
show  on  the  debtor  side  onlv  half  of  the  amount  purchased,  while  on  the 
credit  side  they  show  the  total  sales.  This  may  appear  irregular,  but  it  is  not 
so.  The  propertjr  can  not  be  debtor  (that  is,  owe  us)  for  more  than  our  inter- 
est in  it,  nor  can  it  be  debtor  in  our  books  ior  what  it  may  have  cost  the  other 
partner.  But  when  we  sell  the  goods,  they  produce  into  our  hands  the  total 
amount  of  the  sales,  and  consequently  we  have  a  very  good  reason  for  credit- 
ing them  for  the  same. 

Day-Book — Transaction  op  March  26. 

Elucidation. — The  bill  of  exchange,  which  we  have  bought  for  the 
purpose  of  making  a  remittance  to  London,  owes  us  for  its  face  only, 
and  not  for  the  premium  we  have  paid  on  it. 

Exchange,  as  a  branch  of  our  business,  owes  us  for  what  it  has  coit 


JOURNALIZING.  41 

us — being,  in  this  case,  the  difference  between  the  old  par  value  of  the 
c£,  and  the  amount  the  £  in  Liverpool,  sells  for  here. 

Note.— It  should  be  borne  in  mind,  that  the  premium  here  paid  is  only  an 
apparent  premium— a  premium  on  the  £1  at  $4.44.  If  bills  on  England  were 
bought  or  sold  by  the  rate  of  $4.84  as  the  par  value,  the  exchange  in  the  above 
transaction  would  be  at  a  discount,  instead  of  a  premium. 

When  we  buy  a  bill  of  exchange,  it  is  for  the  purpose  of  placing 
funds  at  some  distant  point,  without  the  necessity  of  remitting  specie  or 
merchandise.  It  is  the  method  of  remitting  generally  preferred,  provi- 
ded the  rate  of  exchange  be  not  too  high. 

Day-Book — Transaction  of  March  27. 

Elucidation.— Wm.  Evans  owes  us  for  the  amount  of  the  order, 
which  bein^  at  sight,  and  accepted,  brings  him  immediately  into  our 
debt.  It  is  agreed  that  it  shall  be  passed  to  his  account,  instead  of  being 
paid  in  cash,  because  by  former  transactions  we  are  owing  him. 

Day-Book — Transaction  op  March  30. 

Elucidation. — Before  making  the  closing  entry  under  this  date,  all 
the  entries  in  the  Journal,  relating  to  the  Company  1  Merchandise,  must 
be  posted,  and  the  sums  on  the  credit  side  of  the  account  examined  in 
the  Day-Book,  in  order  to  see  if  they  are  actual  sales,  or  only  transfers. 
This  done,  we  make  the  following  calculation,  which  is  the  origin  of  the 
Day-Book  entry  of  March  30th : — 

Total  sales  (amount  of  the  credit  side  of  the  account) $7,850  00 

Storage  charged  by  us,  and  any  other  charges  against 

the  goods  if  we  had  them $  39  OO 

Our  commission  for  selling,  at  2  J  per  cent 196  25 

Amount  of  the  expenses  on  the  flour 235  25 

which  we  subtract  from  the  total  sales,  and  which  gives  us 

the  amount  of  the  net  proceeds 7  614  75 

Half  of  which  belongs  to  Mr.  Harris 3,807  37 

And  our  half  is '[[[  3^807  38 

From  this  we  take  the  cost  of  our  half  (found  on  the  debtor 

side  of  the  account),  which  is 3  187  50 

Showing  our  net  gain  in  this  business  to  be 619~88 

Having  explained,  as  above,  the  origin  of  the  Day-Book  entry,  we 
proceed  now  to  show  how  it  is  to  be  disposed  of  in  the  Journal :— ' 

To  Commission  we  owe  for  producing  us $196  25 

To  Store-Expenses  we  owe  for  producing  us 39  00 

To  P.  Harris  we  owe  for  his  half  of  the  net  proceeds  of  the 

flour  in  our  hands 3  g^y  37 

To  Profit  and  Loss  (name  of  our  business)  we  owe  for  our 

half  of  the  net  gain gin  go 

Total  that  we  owe 4  662  50 

6  ■- 


42 


TRIAL  BALANCE. 


I 


J ' 


i.    '* 


This  should  be  the  balance  of  the  account  of  Company  1  Merchandise, 
because  we  can  owe  no  more  or  less,  after  making  the  above  calcula- 
tion, than  we  did  before  ;  but  we  may  owe  different  objects. 

Company  1  Merchandise  is  debtor,  because  it  owes  us  for  the  amount 
we  transfer  from  its  credit  to  the  credit  of  other  accounts,  where  it 
more  properly  belongs.  We  ought  to  make  this  transfer  of  the  balance, 
because  the  goods  have  all  been  sold,  and  the  preceding  calculation 
shows  us  that  we  owe  that  balance  to  others. 

The  "  Account-Sales"  of  this  flour,  made  out  to  be  rendered  to  Mr. 
Harris,  will  be  found  among  the  Forms  at  the  end  of  the  book. 


TRIAL  BALANCE. 

The  student  will  now,  having  posted  all  the  entries  in  the  Journal, 
proceed  to  make  out  the  Trial  Balance  of  March  30,  in  the  manner  ex- 
plained at  the  end  of  January  and  February. 

The  following  is  the  Trial  Balance,  showing  the  balances  of  the  ac- 
counts at  this  date  : — 


Dr. 


Balances  of  March  30,  1850. 


Cr. 


• 

2 

4 

5 

6 

7 

8 

9 

10 

12 

13 

14 

16 

Cash 

$28,787 

4,596 

fl,392 

300 

4,951 

18 

177 

165 

395 

307 

2,020 

4,109 

33 
39 
79 
00 
00 
76 
78 
00 
00 
62 
00 

56 
23 

1 
1 
6 
7 
8 
9 
11 
14 

16 

T.Blanchard 

C.C.  Marsh 

Bills  Payable 

Discount  and  Int'st. 

Profit  and  Loss 

Commission 

P.  Harris 

J.  De  Nones 

Shipment  to  Neii^^ 
Orleans Tj 

$26,920 

16,405 

4,293 

112 

269 

496 

4,994 

3,531 

197 

00 
00 
78 
50 
88 
10 
87 
32 

78 
23 

Merchandise 

Bills  Receivable . . . 

Store-Fixtures 

Schooner  Josephine 

Store-Expenses  . . . 

Exchange  

C.  Lawrence 

S.  H.  Lovell 

W.Howard 

Lockhart  6c  Arrott. 

Shipment  to  Port ) 
au  Prince J 

»5 

57,221 

57,221 

JOURNALIZING. 


43 


BUSINESS  OF  APRIL: 

Embracing  Entries  of  forty  Transactions,  relating  to-Paying  Rent-Receivine  Retnm*- 
Wmng  Consignments  free  of  Charge^SelliSg  on  Comlission-Renewrg  Note^^ 
tl^l^  ourselves  for  Damages-Shipping,  on  our  Account-Closing  Consignmlnt-Buvine 
in  Jomt-Account-Exehanging  Uncurrent  Money-Renewing  our  Notes-Ssferrine  Puf 
cha^  at  Auction-Drawing  Prize- Receiving  Account-slles  with  ^etul^^^Takb.  a 
Consignnient  to  our  Account-Receiving  Freights  of  our  Vessel-Drafts  remitt^as  for  Col 
^io^^?r/'°^  ^r^'"  P"'  ^'^''  ^^  '"^•-  i^«™i"ance-Investing  FundsTn  Ss-S^v^^ 

fo^un^^c^c!!?e"e;LVr^s;&^^^ 

THE  RULE. 

Question  yourself,  in  every  transaction,  thus : 

What  owes  us  ?     For  that  alone  is Dj. 

What  do  we  owe?     For  that  alone  is ii""!!!!!!'!!cr 

Day-Book — Transaction  op  April  2. 

Elucidation— The  cotton  that  we  receive,  in  this  transaction,  owes 
us  as  much  for  the  freight  as  for  ite  first  cost  in  New  Orleans.  It  is  there- 
fore debtor  for  $2,320.  ^  •     xt  i»  inere- 

To  Lockhart  &  Arrott  we  are  indebted  for  the  amount  of  the  cotton 

S'fnT     vIII^a'^^^"'^-.™"  ^"^^^^^  ''  ^^^^^^«  for  a  shipment 
made  to  Lockhait  &  Arrott,  February  4th ;  but  we  do  not  owe  and  credit 

the  shipment  m  this  transaction,  because  it  was  credited  when  we  re- 
ceived the  account-sales,  March  16. 

Day-Book — Transaction  op  April  3. 

ELUCiDATio%In  this  transaction,  there  is  neither  debtor  nor  cred- 
itor ;  that  is,  nothing  owes  us,  and  we  owe  nothing.  We  can  not,  there- 
fore, make  any  Journal  entry.  The  coffee  still  belongs  to  Mr.  Fisher 
We  have  not  bought  it  of  him,  nor  agreed  to  pay  him  a  certain  sum- 
therefore  we  can  not  owe  him  for  the  coffee,  nor  credit  him  for  it  The 
coffee  has  not  cost  us  anything,  nor  is  it  responsible  to  us  for  any  ex- 
penses ;  therefore  it  is  not  debtor.  ^ 

There  is  no  necessity  for  this  transaction  appearing  in  the  Day-Book  • 
but  the  invoice  should  be  copied  into  the  Invoice-Book,  and  Mr^FbW 
Im^lsL]""  ""  ""'"'^'    ''  '^"  quantity  of  coffee  recdved  of  hhJi  on 

Day-Book — Transaction  op  April  7. 

ELticiDATioN.-We  say  nothing  of  Bills  Receivable  in  the  transaction 
of  this  date,  because  the  circumstances  of  the  note  have  not  changed.  It 
still  owes  us  the  «2,000,  for  which  we  made  it  debtor  when  it  began  to 
owe  us — January  5th.  ° 


»( 


44  JOURNALIZING. 

The  new  note  should  be  entered  in  the  Bill-Book,  and  against  the  old 
one  should  be  remarked,  that  it  was  renewed.  (See  Notes  Nos.  1  and 
15,  in  the  Bill-Book.)  It  is  customary,  in  renewing  notes,  to  draw  the 
new  note  for  the  same  amount  as  the  old  one,  and  to  pay  the  interest  on 
the  new  note  in  advance,  for  the  time  it  may  have  to  run. 

Day-Book — 2d  Transaction  op  April  7. 

Elucidation. — Mr.  Fisher  owes  us  for  the  sum  we  have  paid  him  on 
?»ccount  of  the  proceeds  of  his  coffee.  We  shall  owe  him  the  net  pro- 
ceeds when  we  render  the  account-sales. 

To  Fisher's  consignment  we  are  indebted  for  producing  us  the  $1,440 
paid  to  Mr.  Fisher. 

If  we  had  made  two  entries  of  this  transaction  in  the  Day-Book,  Cash 
would  appear  as  both  a  debtor  and  a  creditor. 

Day-Book — Transaction  op  April  10. 

Elucidation. — Mr.  De  Nones  owes  us  for  the  amount  of  the  defects 
found,  and  allowed,  in  goods  sold  for  him.  We  say  nothing  of  the  con- 
signment in  the  Journal  entry,  because  that  has  been  closed,  and  the  net 
proceeds  transferred  to  his  account. 

Merchandise  is  creditor,  because  by  that  name  we  called  the  olives 
when  they  became  ours,  and  now  they  have  produced  us  the  amount 
we  claim  as  deduction  in  the  price  we  took  them  at. 

Day-Book — Transaction  op  April  11. 

Elucidation. — Mr.  Fisher  owes  us  for  the  amount  we  have  paid  him 
— ^that  is,  $1,350  :  $1,322.33,  four  months  before  due,  is  equal  to  $1,350, 
allowing  us  interest  for  four  months  and  three  days. 

Bills  Receivable,  or  the  note  of  S.  H.  Lovell,  owes  us  now  for  the 
sum  that  he  owed  us  before,  because  in  that  kind  of  property  he  has 
paid  us. 

Discount  is  in  our  favor :  it  produces  us  $27.67.  We  discounted  the 
note  for  Mr.  Fisher. 

Day-Book — Transaction  op  April  16.  ^ 

Elucidation. — Before  we  can  make  the  Day-Book  entry  of  this  date, 
all  the  sums  for  which  the  "  consignment"  is  debtor  or  creditor  in  the 
Journal,  must  be  posted  to  the  account  in  the  Leger. 

On  the  credit  side  we  see  the  amount  of  the  sales — $4,680 ;  from 
which  subtracting  all  the  expenses,  leaves  the  net  proceeds  $4,545.  By 
this  calculation,  we  discover  that  the  balance  of  the  account  (which  is 
the  total  of  the  credit  side  in  this  case)  is  $4,680,  and  that  we  owe  this 
sum  to  the  following,  to  which  we  must  now  transfer  it : — 

We  owe  to  Commission  for  what  it  produces  us $117  00 

We  owe  to  Store-Expenses  for  what  they  produce  us 18  00 

We  owe  to  J.  Fisher  for  the  net  proceeds  of  his  coffee 4,545  00 

Making  the  total  of  the  Cr.  side,  or  the  balance  of  the  acct..  4,680  00 


JOURNALIZING. 


45 


These  now  become  our  creditors  instead  of  the  consignment,  and  this 
must  be  charged  for  the  amount  that  we  transfer,  which  will  close  the 
account  of  the  consignment. 

Day-Book — Transaction  op  April  20. 

Elucidation. — The  merchandise  bought  in  joint-account  with  Mr. 
Austin,  in  this  transaction,  owes  us  for  the  amount  it  has  cost  us — that  is, 
for  what  our  two  thirds  cost,  $3,333.33— and  for  no  more.  The  mer- 
chandise can  not  owe  us  for  what  it  has  cost  Mr.  Austin. 

We  say  nothing  of  Mr.  Austin  iri  the  Journal  entry,  because  we  have 
paid  nothing  for  him,  nor  he  for  us. 

Note.— Never  permit  the  mere  circumstance  of  receiving  or  delivering 
merchandise  to  divert  your  attention  from  the  true  and  only  practical  Rule. 
By  this  rule  alone  can  you  prove  the  correctness  of  a  Journal  entry.  There 
are  various  other  transactions,  besides  this,  in  which  the  object  that  is  received 
IS  not  our  debtor^  and  that  which  is  delivered  is  not  our  creditor.  See  the 
transactions  of  the  4th,  12th,  25th,  26th,  and  27th  of  Februarv,  2d,  3d,  16th, 
^^\\^\^i'  ^°.^  ^"^'^^  °^  ^''^<^^'  ^"<^  3d  of  April.  In  all  these  6ases,  if  the  old 
rule  ("The  thmg  received  is  Dr.  to  the  thing  delivered")  should  be  applied,  the 
Journal  entry  would  be  grossly  wrong.  Also,  the  old  rule  never  can  be  ap- 
plied to  mterest,  without  making  a  wrong  entry. 

Day-Book — Transaction  op  April  24. 

Elucidation.— To  renew  a  note,  is  to  pay  it  by  giving  a  new  note  for 
the  old  one ;  and  as  the  new  is  generally  drawn  for  the  same  amount  as 
the  old.  It  18  customary  to  pay  the  interest  that  may  arise  on  the  new 
note,  m  advance. 

Day-Book — Transaction  op  April  28. 

Elucidation.— As  we  receive  the  account-sales  of  our  shipment  to 
Messrs.  Walker  &  Co.  at  the  same  time  we  receive  the  returns,  we  owe  the 
"Shipment  to  Port  au  Prince"  for  the  net  proceeds,  and  not  Walker, 
because  the  shipment  now  produces  us  $6,000. 

If  these  returns  had  not  been  accompanied  by  the  account-sales,  then 
we  should  owe  and  credit  Messrs.  Walker  &  Co.  for  the  invoice  of  hides, 
rihe  freight  composes  a  part  of  the  cost  of  the  hides ;  therefore  thev 
are  debtor  for  the  $200  as  well  as  the  $6,000. 

We  owe  our  schooner  for  the  value  she  produces  us  in  freight. 

Day-Book — 2d  Transaction  op  April  28. 

Elucidation.— The  expenses  on  the  mahogany  were  incurred  while 
It  belonged  to  Messrs.  Walker  &  Co.;  therefore  we  deduct  them  from 
the  amount  at  which  we  buy  the  mahogany  ($3,000),  leaving  the  net 
proceeds  of  $2,650,  which  we  owe  to  the  consignors. 

The  mahogany  owes  us  for  its  cost,  which  is  $3,000. 

Day-Book — 3d  Transaction  op  April  30. 
Elucidation.— The  bill  of  exchange  that  we  have  bought,  in  this 


I 
1 


46  JOURNALIZING. 

transaction,  does  not  owe  us,  because  we  have  bought  it  by  request  of. 
and  remitted  to,  Messrs.  Walker  &  Co. :  they  owe  us 

We  owed  Messrs.  Walker  &  Co.  $2,650,  which  we  will  suppose  was 
due  them  here  (in  New  York  city) ;  and  we  have,  by  their  order,  invested 
that  sum  (less  our  commission)  in  a  draft  drawn  for  as  much  as  the  funds 
would  buy. 

Day-Book — 4th  Transaction  op  April  30. 

ELuciDATiON^In  this  transaction,  we  buy  a  bill  of  exchange,  and 
remit  it  to  Mr.  De  Nones,  in  payment  of  what  we  owed  him— 1^3  469  32 
Let  us  suppose  that  this  debt  was  payable  to  him  in  Cadiz :  we  then 
have  only  to  buy  a  draft  for  which  he  will  receive  that  sum.  If  we  give 
for  the  draft  less  than  that  sum,  the  gain  by  exchange  or  discount  is  ours, 
not  his;  if,  on  the  contrary,  the  exchange  on  Cadiz  is  at  a  .iremium,  the 
loss  would  be  ours,  not  his.  (It  is  necessary  to  know  wh^e  the  money 
1^1,  J  ^^P^y^f  ^®'  ^"  °^^^^  ^o  '^"ow  who  gains  or  loses  by  the  exchange.) 
Ihe  draft  we  have  bought  has  cost  only  $3,402.98;  but  Mr.  De  Nones 
vvill  receive  for  it  $3,454.80,  which  sum,  with  the  interest  for  25  days 
that  It  wants  of  being  due,  will  make  the  sum  that  we  owed  him—- 
$3,469.32. 

In  Journalizing  this  transaction — 
We  owe  to  Exchange,  because  it  is  in  our  favor,  and  produ- 
ces us  the  discount  on  the  draft $51  §2 

We  owe  to  Interest,  because  it  brings  us .* ..         14  52 

We  owe  to  Cash  for  paying  for  the  draft * .  *    3,402  98 

Making  the  sum  which  Mr.  De  Nones  owes  us,  and  is  "" 

debtor  for,  in  this  transaction 3,469  32 

Note.— Had  this  debt  been  due  to  Mr.  De  Nones  in  this  city,  instead  of  Ca- 
diz, we  could  charge  him  only  for  the  cost  of  the  draft,  and  not  for  what  it  was 
drawn  ;  and  then  we  should  have  nothing  to  say  in  the  Journal,  of  exchanffe 
l»ecause  it  would  neither  produce  us  nor  cost  us  anything. 

Day-Book — 5th  Transaction  op  April  30. 

ELuciDATioN.—In  this  transaction  we  buy,  with  funds  in  our  hands 
belonging  to  Mr.  Ruiz,  a  bill  of  exchange  on  Havana ;  and  we  pay  for 
It  according  to  the  rate  of  exchange,  which  we  may  suppose  to  be  11 
per  cent,  discount.  In  this  way.  we  receive  a  draft  for  $5,050.63,  for 
which  we  give  only  $4,974.88.  which,  with  our  commission,  makes  up 
the  amount  of  funds  we  held  for  Mr.  Ruiz — $4,987.50. 

Mr.  Ruiz  owes  us,  in  this  case,  for  the  amount  we  paid  for  the  draft, 
and  for  our  commission,  but  for  no  more. 

Exchange  costs  us  nothing,  nor  do  we  gain  by  it ;  it  being  in  favor  of 
Mr.  Ruiz,  who  will  receive  a  draft  for  a  larger  sum  than  he  would  have 
received,  had  the  exchange  been  at  par. 

Day-Book — 6th  Transaction  op  April  30. 

Elucidation.— In  this  transaction,  we  only  exchange  one  kind  of 
money  for  another ;  and  as  we  pay  a  premium  on  that  we  roceive,  we 


TRIAL  BALANCE.  •  ^ 

Bay  Exchange  owes  us  for  what  it  has  cost,  and  we  owe  to  Cash  for  pay- 
ing  It  for  us.  "  * 

Dav-Book— 7th  Transaction  op  April  30. 
Elucidation.— This  entry  is  made  for  the  purpose  of  creditin?  each 

S«ed  inlf^i:,:  '"f  '=''P'*^1-""^  'l-^  « Wosition'that  it" ^aT  o 
siipmated  m  the  articles  of  agreement  between  them.  To  arrive  at  th^ 
mterest  that  may  be  due  a  partner  on  his  capital,  we  make  ow  his  "  ac 
rfr,r-i  ^rj"""'"^  ""^^  ""^  f"^  Mr.  Harris,  calcJatng  inter! 
due.  bee  the  "  Account-Current"  made  out  for  Mr.  Marsh  amon„ 
try  are  obtained  trom  the  accounts-current. 

viduaW^h!' fi °^  '^"a  T"^'  ""^  '"y  '^^'  ^^  (^^  fi^)  o^«  to  the  indi- 
viduals  ot  the  firm,  and  that  mterest  owes  us. 

Day-Book— 8th  and  9th  Transactions  op  April  30. 

Elucidation.— The  sums  of  these  entries  are  obtained  from  the  acrmmfc 
current,  made  out  for  Mr.  Harris  and  Mr.  Lawrence  which  will  l?  ^r     ^ 
among  the  Forms  at  the  end  of  the  book.     The  emrrrelSfto  M^^  Harrisfs 
journa  ized  wrong ;  but  the  error  is  corrected  by  the  last  entrl  in  thl'^olf  ^  i 
under  date  of  May  30.    This  furnishes  an  exar^ple  for  he  c^^^^^^^^ 
by,  day-book  entries,  which  should  be  resorted  to  only  Xn  thfaccount  Z 
taming  the  error  has  been  closed  ;  in  other  cases  it  is^better  to  change  th^^ 
ores  to  ciphers,  let  the  words  remain,  and  make  a  new  entry.         ^  ^ 


Dr. 


TRIAL  BALANCE. 

Balances  of  April  30,  1850. 


Cit. 


3 

4 

5 

6 

7 

7 

8 

10 

12 

13 

16 

18 


Cash 

Merchandise 

Bills  Receivable . . . 

Store-Fixtures 

Discount  and  Int'st. 

Schooner  Josephine 

Store-Expenses  . . . 

C,  Lawrence. . . . . . 

S.H.Lovell 

W.Howard 

Shipment  to  Boston 

Company  2  Mer-  / 
chandise \ 


$26,274 

11,437 

6,998 

300 

61  n 

4,126 
662 
167 
395 
307 

3,500 

3,333 


58,114 


07 
14 
35 
00 
27 
00 
76 
07 
00 
62 
00 

33 


61 


1 
1 
6 
8 
9 
9 
10 

16 
16 


T.  Blanchard 

C.C.  Marsh 

Bills  Payable 

Profit  and  Loss  . . . 

Commission , 

Exchange , 

P.  Harris 

Shipment  to  New  J 
Orleans ^ 

Shipment  to  Port  \ 
au  Prince v 


$26,870 

16,702 

4,]  37 

2,379 

794 

15-: 

4,988 
J  97 


96 
69 
11 
88 
85 
70 
20 

78 


1,890    44 


58,114 


61 


48 


BALANCE  SHEET. 


BALANCE  SHEET. 


It  is  customary,  in  well-regulated  mercantile  houses,  to  close  all  the 
accounts,  or  balance  the  books,  once  a  year.  The  object  of  so  doing  is 
to  obtain  a  correct  view  of  the  true  state  and  result  of  the  business  of 
which  the  books  give  the  records.  Accounts,  however,  are  closed  or 
balanced  under  other  circumstances — upon  a  cessation  of  business,  dis- 
solution of  partnership,  and  when  the  books  are  full  and  there  is  occa- 
sion for  new  ones. 

The  first  object  to  which  we  direct  our  attention,  in  closing  the  books, 
is  the  Balance  Sheet.  This  sheet  exhibits,  under  two  heads,  the  entire  re- 
sult of  our  mercantile  operations.  Under  the  heading  of  "  Balances  of 
our  Property  and  Dehts"  (or.  Assets  and  Liabilities),  are  brought  to- 
gether all  that  owes  us,  and  that  we  possess,  and  all  that  we  owe  or  are 
liable  for;  under  the  heading  of  '*  Balances  of  our  Profits  and  Losses'* 
are  shown  all  the  balances  of  gain  or  loss  that  may  be  found  in  the 
Leger ;  and  consequently  the  balance  of  one  will  be  the  net  capital,  of 
the  other  the  net  gain. 

The  Balance  Sheet  is  chiefly  composed  from  the  Leger  and  an  in- 
ventory of  the  merchandise  on  hand  belonging  to  us,  which  should  be 
taken  at  the  cost  price,  or  less,  if  the  goods  are  depreciated  in  value, 
but  never  at  more  than  cost. 

Take  a  sheet  of  paper,  and  make  on  it  the  following  headings,  similar 
to  the  succeeding  Balance  Sheet : — 

"  Balances  of  our  Property  and  Debts,"  and 
"  Balances  of  our  Profits  and  Losses." 

(Explanation  of  the  Balance  Sheet  continued  on  page  52.) 


/ 


BALANCE   SHEET 


OF 


AJfRlL    30,  1850. 


Blanchabd  &  Marsh 


V 


r 


Dr. 


Balances  of  our 


Property  and  Debts. 


Cr. 


3 

4 

5 

6 

7 

10 

10 

13 

16 

18 


Cash, 

Merchandise, 

Bills  Receivable, 

Store-Fixtures, 

Schooner  Josephine, 

Charles  Lawrence, 

S.  H.  Lovell, 

Walter  Howard, 

Shipment  to  Boston, 

Comp'y  2  Merchandise,  cost  of  our  two  thirds  on  hand 


balance  on  hand 

balance  on  hand  per  Inventory 

balance  on  hand 

valued  at 

first  cost 

balance  in  our  favor 

balance  in  our  favor 

balance  in  our  favor 

no  account-sales 


$26,274 
15,000 

6,998 
270 

5.000 
167 
395 
307 

3,500 

3,333 


61,245 


07 
00 
35 
00 
00 
07 
00 
62 
00 
33 

44 


Dr. 


Balances  of  our 


6  Store-Fixtures,  loss  10  ®|o  on  the  cost 

7  Discount  and  Interest,    loss 

8  Store-Expenses,  loss 


Thomas  Blanchard^s 
C.  C.  Marshes  •. 


half  net  gain $4,273  24 

half  net  gain 4,273  24 

Net  gain 


50 


6 
10 


Bills  Payable, 
Paul  Harris, 

Thomoi  Blanchard's 
C.  a  Marshes 


balance  outstanding 
balance  in  his  favor  . 


share  of  capital .  .$31,144  20 
s?iar€  of  capital . .  20,975  93 

Net  capital 


Profits  and  Losses. 


4 
7 
8 
9 
9 
16 
16 


Merchandise, 

Schooner  Josephine, 

Profit  and  Loss, 

Commission, 

Exchange, 

Shipm*t  to  N.  Orleans,    gain 

Shipm't  to  P.  Prince,      gain 


New  York.  April  30,  1850 


Cr. 


51 


!  II 


«l- 


BALANCE  SHEET. 


EXPLANATION  OF  THE  ENTRIES  ON  THE  BALANCE  SHEET. 

This  being  done,  turn  to  the  first  account  in  the  Leger,  and,  by  re- 
flecting on  its  nature,  endeavor  to  determine  on  what  part  of  the  iheet 
its  balance  should  be  placed. 

The  first  two  accounts  that  we  find  are  those  of  the  partners,  from 
which  we  take  nothing  at  present,  because  their  balances  are  what  r^ 
mains  of  the  old  or  original  capital.  3 

The  Cash  account  (folio  3)  shows  on  its  debtor  side  all  the  mone.T  wo% 
have  received,  and  on  its  credit,  all  we  have  paid.  It  is  therefore  clear, 
that  the  balance  or  difference  between  the  debit  and  credit,  is  the  money 
on  hand.  Cash  is  a  property  that  owes  us  $26,274.07,  which  sum  we 
will  enter  on  the  debtor  side  of  the  Balance  Sheet,  under  the  head  of 
"  Property  and  Debts." 

The  account  of  Merchandise  (folio  4)  shows  on  its  debtor  side  the 
cost  of  all  the  goods  we  have  bought,  and  on  its  credit,  the  product  of 
all  the  sales. 

The  cost  of  our  merchandise  on  hand,  according  to  the  inventory 
(which  we  now  suppose),  is  $15,000.  This  property,  merchandise,  owes 
us  that  sum,  and  we  enter  it  on  the  debtor  side,  under  the  head  of 
"  Property  and  Debts." 

We  must  now  calculate  the^  gain  or  loss  on  the  sales,  which  is  done 
by  adding  the  amount  of  the  merchandise  on  hand  to  the  amount  of  the 
sales,  thus : — 

Amount  of  sales,  total  of  the  creditor  side $24,619  47 

Amount  of  merchandise  on  hand,  per  inventory 15,000  00 

39,619  47 
Cost  of  all  the  merchandise,  total  of  the  debtor  side 36,056  61 

By  subtracting,  we  find  the  gain  on  the  sales 3,562  86 

This  gain  we  enter  on  the  creditor  side  of  the  part  of  the  sheet  headed 
"  Profits  and  Losses."  ^ 

Note. — There  is  another  way  of  finding  the  gain  on  the  saSes,  when  the  ac- 
count is  in  a  similar  s  ate,  which  is,  by  subtracting  the  balance  of  the  account 
from  the  amount  of  the  inventory,  thus : — 

Inventory $15,000  00 

Balance  of  the  account 11,437  14 

Gain  on  the  sales 3,562  86 

If  there  had  been  no  merchandise  on  hand,  the  balance  of  the  account  would 
then  be  either  gain  or  loss. 

The  account  of  Bills  Receivable  (folio  5)  shows  that  we  have  in  our 
possession  notes  to  the  amount  of  $6,998.35.  This  property  owes  us, 
then,  this  sum ;  and  therefore  we  enter  it  on  the  debtor  side,  under  the 
head  of  "  Property  and  Debts." 

The  account  of  Bills  Payable  (folio  6)  shows  that  there  are  notes  and 
acceptances  out  against  us,  to  the  amount  of  $4,137.11;  and  as  that  is  a 


BALANCE  SHEET. 


53 


■^M 


Bum  we  owe,  we  enter  it  on  the  creditor  side,  under  the  head  of  Prop- 
U »  erty  and  Debts.     This  balance,  as  well  as  the  preceding,  ought  to  cor- 

^   ^  respond  with  the  notes  out,  and  on  hand,  in  the  Bill-Book. 

V  The  account  of  Store-Fixtures  (folio  6)  shows  that  this  property  has 

^  ^  cost  us  $300 ;  from  which  sum  we  deduct  10  per  cent,  for  the  wear,  and 

place  the  balance  ($270)  on  the  debtor  side,  under  the  head  of  "  Prop- 
erty and  Debts  :"  and  the  $30  loss  we  enter  under  the  head  of  "  Profits 
and  Losses,"  on  the  debtor  side. 

The  account  of  Discount  and  Interest  (folio  7)  shows  a  gain  or  a  loss. 
If  the  creditor  side  exceeds  the  debtor,  it  is  evident  that  this  branch  of 
our  busingp  has  produced  us  more  than  it  has  cost,  and  that  the  balance 
is  gain,  liiis"  balance  is  a  debt  owed  to  us ;  but  as  we  never  can  real- 
ize it,  it  is  evidently  a  loss,  and  consequently  we  enter  said  balance  un- 
der the  head  of  "  Profits  and  Losses,"  on  the  debtor  side. 

The  account  of  Schooner  Josephine  (folio  7)  shows  both  property  and 
profit  or  loss.  Her  first  cost  is  $5,000,  which  we  will  take  as  the  amount 
of  property,  and  enter  it  on  the  debtor  side,  under  the  head  of  "  Prop- 
erty and  Debts."  The  creditor  side  of  this  account  shows  what  the 
schooner  has  produced  us  for  freight — $1,055 ;  from  which  we  deduct 
the  expenses  on  the  debit  ($181),  and  the  result  is  the  gain,  which  we 
enter  on  the  credit,  under  the  head  of  "  Profits  and  Losses." 

The  account  of  Profit  and  Loss  (folio  8)  represents  our  business :  if 
the  debtor  side  exceeds  the  credit,  tfce  balance  will  be  loss ;  or,  if  the 
credit  exceeds  the  debit,  the  balance  will  be  gain.  The  balance,  in  this 
case  is  gain,  which  we  enter  under  the  head  of  "  Profits  and  Losses," 
on  the  credit  side. 

Store-Expenses  (folio  8).  This  account  does  not  show  property,  but 
a  branch  of  our  business ;  and  the  balance  which  appears  at  it  is  either 
gain  or  loss.  Store-Expenses  owes  us,  but  they  will  never  pay  wha* 
they  owe ;  therefore  the  balance  of  this  account  should  be  entered  under 
the  head  of  "  Profits  and  Losses." 

The  account  of  Exchange  (folio  9)  shows  a  sum  of  gain,  because  its 
credit  side  exceeds  the  debit — that  is,  this  branch  of  our  business  has 
produced  us  more  than  it  has  cost ;  therefore  we  enter  the  balance  on 
the  credit  side,  under  the  head  of  "  Profits  and  Losses." 

The  account  of  Commission  (folio  9)  represents  a  branch  of  our  busi- 
ness ;  consequently  we  enter  its  balance  under  the  head  of  "  Profits  and 
Losses." 

The  account  of  Charles  Lavrrence  (folio  10)  shows  a  balance  against 
him,  and  in  our  favor,  of  $167.07  ;  and  as  we  consider  him  solvent,  we 
place  it  on  the  debtor  side  of  the  sheet,  under  the  head  of  "  Property 
and  Debts."  ^     ^ 

The  account  of  Paul  Harris  (folio  10)  shows  a  balance  in  his  favor, 
which,  being  a  sum  that  we  owe,  we  enter  on  the  credit  side,  under  the 
head  of  "  Property  and  Debts." 

The  account  of  O.  Otis  &  Co.  (folio  10)  shows  no  balance,  it  having 
been  balanced  or  closed  in  the  course  of  the  business. 

The  account  of  S.  H.  Lovell  (folio  12)  shows  a  balance  in  our  favor, 
and  as  such  we  enter  it  under  the  head  of  "Property  and  Debts,"  as 
the  debit. 


dfl&fe 


54 


BALANCE  SHEET. 


favir  of'^T fif  "^^'u    ^°^^'^  (^°^^^  ^^J^  ^""^^^^  ^  balance  in  our 
''Prop^^^^^^^^^^^^  "^  ^^'^^  ^"  '^^  ^^^^^  «^^^'  -^-  the  head  of 

it«Tr«^rr'''  ^Shipment  to  Boston  (folio  16),  not  having  any  sum  on 

te  credit,  shows  that  we  have  not  received  an  account-sails-  therefore 

the  amount  of  its  debtor  side  is  property  which  we  have  in  Boston     W^ 

Debts."       ^"'°'"'^  """  '  "''^^'"  '^^  ^^"^  ^^  "Property  and 

<]uJus  of  sTskl'^^rK^T^  2  Merchandise  (folio  18)  shows  a  balance 
Zl  IJ   *3.333.33 ;  which  is  the  cost  of  our  two  thirds  of  the  merchan- 
dise  belonging  jointly  to  Mr.  Austin  and  ourselves.    We  therefore  enter 
our  part  on  the  debit  under  the  head  of  "  Property  and  DebtT" 

The  account  of  Shipment  to  New  Orleans  (folio  16)  does  not  now 
tZ.T/  T  t  P^^Pr^'.i^  having  been  sold,  and  the  account-sab^ 
ZV^A       .?^*v  "^'^^^  ?'l^  ^^  '^^  ^hat  the  shipment  has  produced./' 
us  and  on  the  debit,  what  it  has  cost.    The  balance,  in  this  case,  is  gaiirf 
which  we  enter  under  the  head  of  "  Profits  and  Losses."  ^ 

the    recedb""^  ""^  Shipment  to  Port  au  Prince  is  in  the  same  state  as 

Haying  now  been  through  the  Leger,  and  taken  from  every  account 
*  ^^Lp/n? T'^  ^^  property  and  debts,  and  of  profits  and  bases,  and 
disposed  of  the  sums  under  their  appropriate  heads  on  the  Balance 
feheet,  we  add,  with  pencil,  its  columns,  and  ascertain  the  balances. 

Ihe  Balance  Sheet  exhibits  two  important  results :  Under  the  head 

SL^iS-r^  ?t'''  ^^  '^^?  ^"  ^^  P^^^ess,  and  all  that  we  owe; 
the  difterence,  or  balance,  must  be  our  present  net  capital— $52,120  13 
All  the  sums  of  gam  and  those  of  loss,  throughout  the  Leirer,  have  been 
brought  on  to  the  Balance  Sheet,  under  the  Lad  of  "  PrffiS  and  Los" 

r«\}.rr.i  f' ^  ""i  '^^  ^^^^  r^^^^^^  °^  ^^is  part  of  the  sheet  must 

be  the  net  gam  of  our  busines8-$8,546.48.  Thifcan  not  be  closed,  or 
finished,  until  it  has  been  proved.  ^-'waea,  or 

PROVING  THE  BALANCE  SHEET. 

J^^^f^f^'^'''  ^^^^'  .^^1  ^^fT^^t,  it  may  be  proved  by  adding  the  net 
^  t^the  onginal.  capital,  which  should  make  the  net  present  capital  ; 

J?n '5'^°^^^'/  old  capital  (balance  of  his  account). . .  .$26,870  96 
C.  C.  Marsh's  old  capital  (balance  of  his  account) ...... .16,702  69 

Net  old  capital  in  the  business . 7?77q~F/; 

Net  gain  by  the  Balance  Sheet ....  .• ;.];;;     g'^^g  ^ 

Net  present  capital "52420  13 

Which,  being  the  same  amount  produced  by  subtracting  all  we  owe  from 
all  we  have  (property  and  debts),  is  proof  that  the  Bailee  Sheet  is  co^ 
r^t.  The  proof,  then,  consists  in  finding  the  present  capital  by  two 
different  methods:  one,  by  subtracting  our  liabifities  from^our  aLiu 
the  other,  by  adding  our  gain  to  our  former  capital.  These  operations 
should,  of  course,  result  in  ihe  same  sum.  operations 


> 


^ 


CLOSING  THE  BOOKS. 
CLOSING  THE  BALANCE  SHEET. 


55 


The  net  gain  is  divided  equaljy  between  the  partners,  and  the  last  two 
entries  are  made  on  the  debtoi»|ide  of  that  part  of  the  sheet  headed 
"Profits  and  Losses ;"  which  optation  will  close  or  balance  that  part 
of  the  sheet.  \  ^ 

Each  partner's  share  of  the  neticapital  will  be  found  by  adding  his 
half  of  the  net  gain  to  his  olM  capital^alance  of  his  account).  The  last 
two  entries  on  the  credit  d^diat  part  headed  '*  Property  and  Debts," 
show  each  partner's  share  mhe  net  capital,  and  close  that  part  of  the 
Iheet.  tf.^  ^ 

Place  the  totals  at  the  foot  of  the  columns,  affix  the  date,  and  the 
Balance  Sheet  is  finished. 

If  for  any  reason*  it  is  not  desired  to  close  the  books,  all  information 
relative  to  the  state  of  our  business  may  be  derived  from  ihe  Balance 
Sheet. 

CLOSING  THE  BOOKS. 

To  close  an  account,  means  to  make  the  debtor  and  creditor  sides 
equal. 

Six  entries  in  the  Day-Book,  composed  from  the  contents  of  the  Bal- 
ance Sheet,  journalized  and  posted,  will  always  close  a  set  of  books. 

There  are  two  motives  for  making  these  closing  entries :  the  first  is, 
to  carry  the  net  gain  of  the  business  to  the  partners'  accounts ;  the  other 
is,  that  each  account  in  the  Leger  may  begin  anew,  by  its  balance  being 
separated  from  the  other  sums,  and  brought  down  below  the  totals,  or 
lines.  *• 

Day-Book,  April  30 — Last  six  Entries. 

The  last  six  entries  in  the  Day-Book,  under  date  of  April  30,  are 
composed  from  the  Balance  Sheet. 

The  object  of  the  Jlrst  is,  to  transfer  the  losses  from  the  several  ac- 
counts where  they  now  are,  to  one  account,  viz..  Profit  and  Loss ;  there- 
fore we  make  this  debtor  in  place  of  the  others,  and  the  others  become 
creditors ;  which  entry,  when  posted,  will  close  those  several. 

The  object  of  the  second  entry  is  to  transfer  the  gains,  in  like  manner, 
from  the  several  accounts  to  one  account — ^which  is  Profit  and  Loss ' 
therefore  this  becomes  our  creditor,   and  those  our  debtors. 

The  object  of  the  tJ^iri^ttry  isVta  transfer  the  net  gain,  which  now 
stands  at  the  Profit; ^ndJUjWaq^iift,  to  the  accounts  of  the  partners : 
these,  therefore.  Become  tlfe  credkore,  and  that  the  debtor ;  .which  entry! 
when  posted,  will  .'dloBe  the  Profit  and  Loss  account.    . 

The  ol^ct  o£  the  fourth  entry  is  to  transfer  all  the  balances  of  Prop- 
erty and  Debts,  in  our  favor, 'tb "a  new  account  opened  in  the  Leger, 
entitled  "  Balances  of  April  30, 1850."  Consequently,  this  new  account 
becomes  debtor  for  all  the  sums  that  the  former  owed  us,  and  they  be- 
come creditors ;  which  entry,  when  posted,  will  balance  or  close  those 
accounts.     Post  the  creditors  in  red  ink. 

The  object  of  the  ffth  entry  is  to  transfer  the  balances  of  all  those 
that  we  owe,  to  the  account  of  "  Balances  of  April  30,  1850  :"  this. 


56 


OPENING  NEW  BOOKS. 


then,  becomes  the  creditor,  and  those  the  debtors ;  which  will,  when 
posted,  close  the  accounts  of  Bills  Payable  and  P.  Harris.  Post  these 
two  in  red  ink. 

The  sixth  entry  closes  or  balances  the  three  only  remaining  unclosed 
accounts.  The  balance  of  the  account  entitled  "  Balances  of  April  30, 
1850,"  is  now  the  net  present  capital— $52,120.13 ;  and  the  balances  of 
the  accounts  of  the  partners  are  their  respective  shares  of  said  capital. 
To  close  these  three  accounts,  the  partners  become  debtors,  and  the 
"  Balances"  creditor.  Post  all  these  m  red  ink.  The  reason  of  posting 
the  balances  in  red  is,  that  such  sums  are  hereafter  to  be  brought  down 
m  new  accounts,  ^ 

All  the  accounts  in  the  Leger  ought  now  to  balance ;  therefore  rule 
and  foot  them,  and  the  books  are  closed. 


OPENING  NEW  BOOKS. 

If,  when  the  books  have  been  closed  according  to  the  directions  given, 
there  should  be  no  necessity  for  opening  new  books,  and  the  business  is 
to  be  continued  in  the  old  ones,  we  open  the  accounts  by  merely  bring- 
ing down  (under  the  old  heading,  and  below  the  lines)  the  balances  al- 
ready vn-itten  in  the  accounts  in  red  ink,  by  writing  "  To  Balance,'*  or 
"  By  Balance,'*  as  the  case  may  be. 

But  if  the  books  are  full,  and  it  should  be  necessary  to  open  new 
ones,  the  best  method  is  to  make  an  entry  in  the  new  Day-Book,  com- 
posed from  the  Balance  Sheet,  showing  the  state  of  the  affairs  at  the 
closing  of  the  old  books,  in  the  following  manner : — 

f  New  York,  April  30,  1850. 


'Inventory  of  the  Property  and  Debts  of  the  firm  of 
Blanchard  &  Marsh,  as  per  Balance  Sheet  of  this 
date,  as  follows : — 

Cash,  balance  on  hand $26,274 

Merchandise,  per  Inventory 15,000 

Notes  in  our  favor,  as  per  Bill-Book 6,998 

Store-Fixtures,  valuation 270 

Schooner  Josephine,  first  cost 5,000 

I  Charles  Lawrence,  balance  in  our  favor. . .  167 

S.  H.  Lovell,  balance  in  our  favor 395 

Walter  Howard,  balance  in  our  favor 307 

Shipment  to  Boston,  of  April  30,  1850 3,500 

Company  2  Merchandise,  our  f  on  hand . . .  3,333 

Our  notes  outstanding,  aa  per  Bill-Book . . .     4,137 

Paul  Harris,  balance  in  his  favor 4,988 

Net  capital 


Of  which  Thomas  Blanchard's  share  is $31,144 

Of  which  C.  C.  Marsh's  share  is 20,975 


JOURNALIZING.  57 

The  Journal  entry  of  the  preceding  Day-Book  entry  would  be  such 
as  to  show  several  debtors  and  several  creditors.  The  debtors  are  all 
those  properties  and  persons  which  owe  us,  and  the  creditors  those  that 
we  owe.  For  the  balance  between  these,  which  is  the  net  capital,  the 
tirm  owes  the  mdividual  partners,  and  they  should  bo  credited,  thus  :— 

^""^"^«  1>T,  To  Sundries. 

?/^^V"  *  V. $26,274  07 

Merchandise    i^^qOO  00 

Bills  Receivable 6,993  35 

Dtore-l<  ixtures 270  00 

Schooner  Josephine *.'.;."/.  5,000  00 

Charles  Lawrence jgy  07 

S.  H.  Lovell 295  ^^ 

Walter  Howard !!!!!!.".'!!!.'.'.*!        307  62 

shipment  to  Boston 3  500  OO 

Company  2  Merchandise '.'.'.!'.'/.'.'.     3',333  33  $61,245  44 

To  Bills  Payable 4,137  11 

"    Paul  Harris 4,988  20 

"    Thomas  Blanchard 31,141  20 

"   C.  C.  Marsh 20,975  93    61,245  44 

When  the  above  entry  is  posted,  the  new  books  will  be  opened. 


BUSINESS  OF  MAY: 

Transaction  of  May  16. 

onlv  «4^no  7^°/-''  ""''''  ^''^^^«  buy  in  this  transaction,  has  cost  us 
TT,„  ftl  1?  .1  "'^.''''<=°""'  °n  'h,e  draft  is  no  part  of  the  cost  of  the  stock. 
The^tock,  therefore,  owes  us  «4.000.  When  we  receive  any  dividends 
on  this  stock,  we  shall  credit  it  for  the  interest  it  produces  us  "'^'"^'"^^ 
^change  costs  us.  in  this  transaction,  $20.10,  for  which  it  is  debtor 

orZ-Vr,**"''"^  ^'*"''  ^  ^"-  ^"^  '•>«  ^'"O""'  ^«  draw  on  them  or 
order  them  to  pay  for  us ;  they  are  therefore  creditors. 

Transaction  op  May  23. 

In  the  traiisactiou  of  this  date,  we  ship  an  invoice  of  goods  in  joint- 
account  with  Mr.  Austin  ,  we  then  ship  half  of  the  invoice  for  him''.Zd 
half  for  ourselves:  therefore,  he  must  owe  us  for  his  half  of  the  Lhip 
ment,  and  the  shipment  owes  us  for  what  it  has  cost  us  for  our  half   We 
owe  whatever  contributes  to  make  up  the  amount  of  the  shipment' 


0 


MONTHLY  ENTRIES. 

D ay-Book — The  four  Entries  op  Mat  31. 

The  entries  in  the  Day-Book  of  this  month  are  introduced  for  the 
purpose  of  showing  a  plan  of  making  monthly  or  weekly  entries,  which 
shall  include  all  the  simple  transactions  of  the  house — that  is,  the  sim- 
ple purchases  and  sales  of  merchandise,  simple  cash  receipts,  and  simple 
cash  payments :  such  entries  to  be  made  up,  at  the  end  of  each  month 
or  week,  from  the  following  books,  viz. :  Invoice-Book,  Sales-Book,  and 
Cash- Book. 

The  first  of  the  four  entries  in  the  Day-Book  under  this  date,  is  sup- 
posed to  have  been  taken  or  composed  from  the  Invoice-Book.  It  in- 
cludes all  the  purchases  of  merchandise,  during  the  month,  for  notes  or 
on  account.  The  purchases  for  cash  do  not  come  into  this  entry ^  but 
are  included  in  the  entry  taken  from  the  Cash-Book. 

The  second  of  the  four  entries  in  the  Day-Book  of  this  month,  is  sup- 
posed to  be  composed  from  the  Sales-Book.  It  embraces  all  the  sales 
of  merchandise,  except  the  cash  sales :  these  come  into  the  Day-Book 
from  the  C ash-Book,  with  all  other  cash  receipts. 

The  third  of  the  four  Day-Book  entries  of  this  date,  is  drawn  from 
the  debtor  side  of  the  Cash-Book.  It  includes,  in  a  condensed  form,  all 
the  sums  of  money  received  during  the  month.  The  sums  received  of 
persons,  and  for  which  they  should  be  credited,  are  shown  separately 
with  the  dates ;  but  the  other  sums  are  brought  in  aggregate  amounts. 

The  last  of  the  four  Day-Book  entries  of  this  date  we  will  suppose  is 
composed  from  the  creditor  side  of  the  Cash-Book.  It  comprises  all  the 
sums  of  cash  paid  out  during  the  month ;  those  paid  for  merchandise, 
expenses,  interest,  and  all  other  objects  (except  persons  who  owe  us),  in 
aggregate  amounts. 

This  monthly  entry  plan  of  writing  up  the  business  of  a  house,  is  much 
admired,  and  possesses  many  advantages  over  the  method  of  making 
separate  Day-Book  and  Journal  entries  of  all  transactions.  Among  its 
advantages  may  be  enumerated  the  following : — 

1st.  It  exhibits  nearly  the  whole  of  the  business  of  the  month  in  only 
four  Day-Book  entries ;  thereby  affording,  monthly,  a  very  clear  and 
satisfactory  view  of  the  business. 

2d.  The  posting  is  reduced,  not  a  hundred  per  cent.,  but  to  a  hun- 
dredth part  of  what  it  would  be  on  the  daily  or  separate  entry  plan. 

3d.  Omissions  or  errors,  in  transferring  sums  to  the  Day-Book  from 
the  Cash-Book,  Invoice-Book,  and  Sales-Book,  can  not  occur^  because 
the  addition  of  each  Day-Book  entry  must  agree  with  the  addition  of  the 
book  from  which  it  is  brought. 

4th.  The  accounts  of  Merchandise,  Cash,  Bills  Receivable,  Bills  Pay- 
able, Expenses  and  Interest,  which  generally  cover  many  folios  in  the 
Leger,  to  no  purpose,  become,  as  they  should,  the  shortest — not  having 
on  them  more  than  twelve  or  twenty-four  sums  in  a  year. 

It  must  be  understood  and  remembered,  that  the  monthly  entries  can 
embrace  no  transaction  which  does  not  appear  in  full  and  complete  in 
either  the  Cash-Book,  Invoice-Book,  or  Sales-Book ;  and  that  any  trans- 


MONTHLY  ENTRIES. 


6Ji 


action  that  can  not  be  made  a  purchase  or  sale  of  merchandise,  or  a 
cash  receipt  or  payment,  must  have  a  separate  Day-Book  entry  at  the 
time  it  occurs,  and  may  be  journalized  and  posted  separately. 

The  monthly  entry  plan  is  not  as  simple  as  the  other.  To  adapt  it 
successfully,  one  must  be  well  acquainted  with  the  subject,  and  tnor- 
oughly  understand  how  to  conduct  a  set  of  books  on  the  daily  or  sepa- 
rate entry  method. 

Day-Book — May  30  (La«t  Entry). 

This  entry  is  made  to  give  a  sample  of  a  day-book  entry  to  correct  er- 
rors which  may  sometimes  be  discovered  after  an  account  has  been  closed. 
As  Mr.  Harris  was  charged  for  an  amount  for  which  he  should  have 
been  credited,  it  is  now  necessary  to  credit  him  for  double  that  sunu 


tl») 


QUESTIONS  AND  ANSWERS. 


««»' 


QUESTIONS  AND  ANSWERS, 


RELATING  TO 


OPENING,  CONDUCTING,  AND  CLOSING  BOOKS. 

J 


OPENING  BOO 


.  Quest.  What  is  meant  by  opening  book s'w  accounts  ? 
Ans.   Commencing  the  records  of  a  business  in  a  systematic  manner, 
t.  Q.  With  what   records  or  entries  does  a  business   generally  com- 
mence 1  .        *   .  . 
A.  With  the  circumstances  of  the  person  commencing  business :  with 

a  statement  of  his  capital. 

3.  Q.  When  a  person  begins  business  without  capital,  what  will  be  the 

first  entry  in  his  books  1 
A.  The  first  transaction  that  occurs — a  purchase  or  aught  else. 

4.  Q.  If  a  person  begins  business  without  capital,  and  owes  to  John 

Sims  $1,000,  what  will  be  his  Journal  entry  ] 
A.  Supposing  his  name  to  be  Thomas  Blanchard,  his  Journal  entry 
will  be — 
Thomas  Blanchard  Dr. 

To  John  Sims «1,000  00 

5.  Q.  If  the  first  transaction  in  your  books  should  be  the  purchase  of 

50  bales  of  cotton,  of  John  Sims,  on  credit,  amounting  to 
$2,000,  what  would  be  your  Journal  entry  1 

A.  Merchandise  Dr. 

To  John  Sims $2,000  00 

6.  Q.  Why  is  that  your  Journal  entry  1 

A.  Because  it  shows  all  the  debtors  and  creditors  of  the  transaction. 

7.  Q   Why  do  you  make  Merchandise  debtor,  and  John  Sims  creditor, 

in  that  transaction  ? 
A,  The  Merchandise  is  debtor,  because  it  owes  me  for  what  it  has 
cost  me ;  and  Sims  is  creditor,  because  I  owe  him — ^not  having 
paid  him  for  the  cotton. 


It 


8.  Q. 

A. 

9.  Q. 
A. 


10.  Q. 
A. 


11.  Q. 
A. 


12.  Q. 

A. 

13.  Q. 

A. 


14.  Q. 


QUESTIONS  AND  ANSWERS.  61 

What  would  be  your  Journal  entry,  if,  at  the  commencement  of 
your  business,  you  borrow  of  J.  Sims,  cash — $3,000  ? 

Cash  Dr. 

To  John  Sims $3,000  00 

What  would  be  your  Journal  entry,  if  you  begin  business  with 

a  capital,  in  cash,  of  $10,000  ? 
Supposing  my  name  to  be  Thos.  Blanchard,  my  entry  would  be — 

Cash  Dr. 

To  Thomas  Blanchard $10  000  00 

How  do  you  explain  this  entry  ? 

Cash  is  the  species  of  property  which  owes  me  for  my  capital ; 
therefore  it  is  debtor.  Nothing  can  be  debtor  in  my  books, 
unless  it  owes  me.  I  am  creditor,  because  I  am  possessed  of 
$10,000  capital,  for  which  I  owe  no  one. 

Why  do  you  not,  in  opening  your  books,  credit  an  account  called 
"  Stock,"  for  your  net  capital  ? 

By  so  doing,  I  should  be  calling  myself  «  Stock"  (that  being  the 
name  given  to  the  proprietor  in  some  systems  of  book-keep- 
ing), and  I  do  not  perceive  any  good  reason  for  substituting 
that  name  for  my  own. 

Note.— Where  there  are  many  partners  in  a  business,  as  in  a  bank- 
ing or  railroad  company,  there  is  kept  an  extra  Leger,  containing 
only  the  accounts  of  the  partners.  In  such  cases,  there  must  be  an 
account  in  the  principal  Leger  to  represent  all  those  in  the  extra 
Leger:  that  account  may  be  called  "Stock,"  "Stockholders,"  or 
"  Shareholders." 

When  several  persons  commence  a  partnership  in  company,  and 
all  do  not  advance  their  portions  of  the  capital,  how  would  be 
your  Journal  entry  ? 

I  should  credit  such  only  as  advanced  capital,  and  neither  debit 
nor  credit  the  others. 

Will  you  imagine  for  me  a  Day-Book  of  the  commencement  of  a 
single  business,  supposing  the  party  to  owe  and  be  owed, 
and  that  your  name  is  Thomas  Blanchard  ? 

I,  Thomas  Blanchard,  commence  business  under  the  following 
circumstances : — 

I  have  in  cash,  deposited $1,000  00 

I  owe  to  John  Sims,  on  account 100  00 

My  net  capital $900  00 

Or  thus : — 

Property  and  Debts  of  Thomas  Blanchard,  per  Inventory  taken 
this  day : — 

Cash,  balance  in  bank $1,000  00 

Balance  due  John  Sims,  on  account 100  00 

Net  capital TTTTrrTT    $900  00 

In  what  manner  will  you  Journalize  these  entries  ? 


62  QUESTIONS  AND  ANSWERS. 

A,  I  should  Journalize  them  both  thus : — 

Cash  Dr.  To  Sundries. 

To  John  Sims $100  00 

Thomas  Blanchard 900  00  $1,000  00 


<( 


16.  Q. 
A. 


17.  Q. 
A. 


CONDUCTING  OR  KEEPING  ACCOUNTS. 

15.  Q.  Which  is  the  most  important  book  of  a  set  of  account  books  t 
A.  The  Day-Book ;  because  it  gives  a  complete  history  of  our  busi- 
ness, which  we  do  not  expect  to  find  in  the  others.  In  some 
systems,  the  Day-Book  is  a  mere  blotter,  and  the  transactions 
entered  therein  are  repeated,  with  explanations,  in  the  Jour- 
nal ;  in  that  case,  the  Journal  is  the  most  important. 

How,  or  in  what  manner,  should  Day-Book  entries  be  written  t 
Day-Book  entries  should  be  written  in  clear  and  simple  sen- 
tences :  the  different  parts  of  a  transaction  should  be  stated  in 
the  order  in  which  they  occur.  I  do  not  think  the  words  debtor 
and  creditor  should  be  used  in  Day-Book  entries,  but  merely  a 
simple  record  of  the  transaction. 

From  what  sources  do  you  get  the  Day-Book  entries  ? 

Few  transactions  appear  first  in  the  Day-Book,  although  it  is 
often  called  the  book  of  original  entry.  Entries  in  the  Day- 
Book  are  drawn  from  various  sources — generally  from  the  In- 
voice-Book, Sales-Book,  C  ash-Book,  and  Bill-Book. 

18.  Q.  What  do  you  consider  to  be  the  ot^ect  of  the  Journal  ? 

A.  To  exhibit  the  debtors  and  creditors^  which  arise  from  mercantile 
transactions,  separated  from  the  sentences  of  explanation  con- 
tained in  the  Day-Book,  that  they  may  be  more  easily  and 
correctly  transferred  to  the  Leger. 

19.  Q.  By  what  principle  or  rule  do  you  distinguish  debtors  and  cred- 

itors, or  make  Journal  entries  1 
A.  The  rule  I  use  is  this  :  All  those  persons  and  things  which  I 
think  owe  me,  X  call  Debtors ;  and  all  those  which  I  owe,  I 
call  Creditors. 

20.  Q.  In  a  transaction  where  there  are  many  sums,  how  do  you  know 

which  sum  to  affix  to  the  name  of  a  debtor  ? 
A,  After  reflecting  well  on  the  transaction,  I  affix  the  sum  which  I 
can  demand  of  him  or  it. 

21.  Q.  Will  you  explain  to  me  how  things  or  objects  can  owe  us  when 

we  have  them  ? 
A,  Perhaps  we  had  better  begin  with  the  definition  of  the  word 
dollar. 

22.  Q.  Very  well ;  how  do  you  define  the  word  dollar  t 

A,  Dollar  is  both  the  name  of  a  coin,  and  the  name  of  a  measure  of 
a  quantity  of  value.  As  a  measure,  it  conveys  the  same  idea 
of  value  as  yard  does  of  space,  pound  of  weight.  A  pound  is 
a  measure  of  weight,  and  a  dollar  is  a  measure  of  value.  We 
may  have  ten  yards  of  cloth,  ten  feet  of  land,  ten  pounds  of 


QUESTIONS  AND  ANSWERS. 


63 


iron  or  gold  :  we  may  have  ten  dollars  in  either  of  these  arti- 
cles, as  well  as  in  cash  or  money. 

23.  Q.  Well,  if  I  have  $1,000,  how  can  there  be  any  debt,  when  I  have 

the  sum  ] 
A.  If  you  have  $1,000,  you  must  have  that  amount  of  value  in  some 
kind  of  property  J  because  that  sum  is  only  a  quantity  of  value 
(unless  you  speak  of  a  thousand  pieces  of  coin) ;  therefore, 
finish  your  question,  and  tell  me  what  you  have  the  $1,000  in. 

24.  Q.  If  I  have  $1,000  in  money,  how  does  anything  owe  me  ? 

A,  Money  and  cash  are  only  names  of  property :  if  you  had  $1,000 
in  land  or  merchandise,  could  not  these  owe  you  for  the  value 
invested  in  them  1  Why,  then,  does  not  the  money  owe  you 
for  that  sum  1 

25.  Q.  But,  is  not  that  imagination  ] 

A.  No,  sir ;  not  unless  the  law  is  so.  The  law  makes  property  and 
things  liable  for  debts.  The  law  that  supports  your  claim  on 
a  person  for  $1,000,  supports  it  belter  on  a  property,  because 
It  maintains  you  in  your  authority  over  and  possession  of  the 
property,  until  your  claim  is  satisfied. 

26.  Q.  You  understand,  then,  that  a  thousand  dollars  means  a  quantity 

of  value ;  and  if  that  value  be  in  merchandise,  the  merchan- 
dise must  owe  for  that  value ;  if  it  be  invested  in  houses  and 
lands,  those,  or  real  estate,  must  owe  f)r  that  value;  and  if  it 
be  in  cash  or  money,  it  must  owe  1 
A.  Yes,  sir ;  if  it  is  not  so,  the  science  of  book-keeping  is  vnrong, 
and  we  can  never  fnore  use  the  word  debtor  as  applied  to  things. 

27.  Q.  The  science  is  right ;  and  you  will  do  well,  whenever  you  pay 

out  any  sum,  to  ascertain,  with  care,  whaty  as  well  as  wTiOf  you 
can  charge  for  it. 
Why  do  you,  in  the  first  entry  of  the  Journal  of  this  book,  carry 
out  into  the  last  column  the  two  amounts  % 
A,  Merely  to  show  that  the  sums  of  the  debtors,  and  the  sums  of 
the  creditors,  form  two  equal  amounts. 

28.  Q.  Why  ought  the  debtor  and  creditor  sums  equal  each  other  ? 

A.  When  a  person  owes  us,  we  must  of  necessity  owe  some  thing 
for  the  sum  that  he  owes  us.  This  is  the  case  in  every  trans- 
action ;  therefore  the  debtor  and  creditor  sum  or  sums  are 
always  equal  in  a  correct  Journal  entry. 

29.  Q.  How  do  you  Journalize  this — ^A  friend  makes  you  a  present  of 

$1,000  in  cash  ?     And  how  explain  it  ? 
A,  Supposing  my  name  to  be  Thos.  Blanchard,  my  entry  would  be — 

Cash  Dr. 

To  Thomas  Blanchard $1,000  00 

Cash  is  debtor,  because  it  owes  me  the  value  it  contains,  or  that 
I  have  in  it ;  and  I,  myself,  become  creditor,  because  I  owe 
nobody  for  this  value  :  it  augments  my  capital. 

30.  Q.  I  have  seen  systems  of  book-keeping  in  which  "  Profit  and  Loss" 

is  credited,  in  such  a  transaction.     Is  it  wrong,  and  why  ? 


I! 


64 


A, 


31.  Q. 
A, 

32.  Q. 

A. 

33.  Q. 

A, 

34.  Q. 


1          ^ 

A. 

1 

A. 

1 

A. 

1 

Q- 

1 

A. 

1 

Q- 

L 

A. 

1 

Q. 
A. 

QUESTIONS  AND  ANSWERS. 

It  is  wrong,  because  "  Profit  and  Loss"  is  the  account  which 
represents  our  business :  it  should  show  only  the  gains  and 
losses  that  result  from  the  business.  In  this  transaction,  we 
do  not  owe  our  business  for  the  $1,000,  because  our  business 
did  not  produce  the  sum.  If,  therefore,  we  carry  such  sums 
to  the  Profit  and  Loss  account,  the  purpose  for  which  it  is 
opened  will  be  completely  frustrated. 

Which  do  you  place  first  in  a  Journal  entry,  the  debtors  or  the 
creditors  ? 

The  names  of  the  debtors.  I  do  not  know  why  they  are  always 
placed  before  the  creditors,  unless  it  be  that  people  generally 
think  more  of  their  debtors  than  they  do  of  their  creditors. 

Very  well  thought  of !  Can  you  inform  me  why  we  never ^ee 
the  word  creditor  (Cr.)  in  the  Journal  ? 

Because  the  word  debtor  (Dr.)  distinguishes  the  debtors ;  and 
there  being  only  two  kinds,  one  being  shown,  the  others  must 
of  course  be  the  creditors. 

To  whom  do  the  "  Sundries"  owe,  in  the  Journal  entry  of  Janu- 
ary 19  ?  ^ 

They  owe  the  owners  of  the  books — Blanchard  &  Marsh. 

That  entry  reads—*'  Sundries  Dr.  to  Oliver  Otis  &  Co."     Why 

do  you  say,  "  to  Blanchard  &  Marsh  ?" 
Because  there  are  certain  words  always  understood  to  follow  the 

word  "Dr.,"  and  certain  others  understood  to  precede  the 

names  of  the  creditors,  in  every  entry  in  the  Journal. 
What  are  those  words  ? 
Those  which  follow  the  term  "  Dr."  are,  ''to  us;'*  and  those  that 

precede  the  creditors  are,  "  We  are  debtor'' 
Why  are  not  those  words  used  in  Journal  entries  ? 
Those  words  are  superfluous ;  because  the  mere  act  of  writine 

in  our  books  any  person  or  thing  Dr.,  indicates  that  that  person 

or  thing  is  debtor  to  us,  or  is  our  debtor. 
What  relation  does  the  Journal  bear  to  the  Day-Book  and  Leger  » 
An  intermediate  relation— serving  to  convey  the  debtors  and 

creditors  from  the  former  to  the  latter. 

In  Journalizing,  do  you  make  it  a  rule  to  extend  the  same  sum 
in  the  Journal  that  you  extend  into  the  outer  column  in  the 
Day-Book  ? 

By  no  means :  the  position  that  sums  occupy  in  the  Day-Book 
should  be  no  guide  for  their  position  in  the  Journal. 

Have  you  heard  of  a  rule  for  Journalizing,  founded  on  the  words 

''receive''  and  "deliver?" 
Yes,  sir — in  these  words : — 

"  By  Journal  laws,  what  I  receive. 
Is  debtor  made  to  what  I  give." 

How  does  this  rule  apply,  and  how  not  ? 

This  rule  originates  in  the  coincidence  that  things  are  often 


QUESTIONS  AND  ANSWERS. 


06 


debtor  and  received  at  the  same  time.  But  this  is  far  from 
being  always  the  case  :  a  striking  instance  may  be  found  in  the 
transaction  of  3d  of  April  in  this  volume.  But  if  the  things 
received  were  always  debtors,  and  those  delivered,  creditors, 
such  a  rule  would  be  unworthy  of  science,  because,  to  admit 
this  rule,  one  must  admit  that  the  word  receive  means  debtor y 
and  that  deliver  signifies  creditor. 

41.  Q.  For  what  purpose  is  the  Leger  ? 

A.  To  show  the  accounts  of  all  those  that  owe  us,  and  of  all  those 
that  we  owe. 

42.  Q.  What  do  you  understand  by  posting  or  legerizing  1 

A.  Transferring  the  sums  from  the  Journal  to  the  I  eger.     Posting 
,  sometimes  includes  Journalizing. 

43.  Q.  How  often  should  books  be  posted  ? 

A.  t)aily,  weekly,  or  monthly,  according  to  the  natui«  of  the  busi- 
ness. 


44.  Q. 
A, 

45.  Q. 
A. 


46.  Q. 
A. 


What  are  the  names  of  th©  auxiliary  books  ? 

Cash- Book,  Invoice-Book,  Sales-Book,  and  Bill-Book.     These 

are  the  principal,  and  appear  indispensable  in  every  business. 
What  is  the  use  of  the  Cash-Book  ? 
It  shows  every  sum  of  cash  or  money  which  we  receive  or  pay. 

It  serves  as  a  check  on  that  kind  of  property ;  for  the  balance 

between  its  debtor  and  creditor  sides,  should  agree  with  the 

money  on  hand. 

When  do  you  balance  the  Cash-Book,  and  how  ? 

Daily — when  the  business  of  the  day  is  over.  The  book  is  bal- 
anced thus:  Obtain  the  difference  between  the  debtor  and 
creditor  pages,  see  that  the  difference  agrees  with  the  money 
we  have  on  hand,  and  make  an  entry  on  the  credit  side  by 
writing  "  Balance  on  hand"  vnth  the  difference ;  and  when  the 
account  is  ruled  and  footed,  it  will  be  balanced. 

When  should  entries  be  made  in  the  Invoice-Book  ? 

At  the  time  the  goods  are  received,  the  invoice,  or  bill  of  them, 
should  be  copied  in  the  book. 

When  are  entries  to  be  made  in  the  Sales-Book  ? 

At  the  time  the  goods  are  selected,  or  ordered  by  the  purchaser, 

they  should  be  described— quantity,  quality,  and  price— in  the 

Sales-Book. 

49.  Q.  When,  and  how,  do  you  take  entries  from  the  Invoice  and  Sales 

Books  to  the  Day-Book  ? 
A,  Single  purchases  and  sales  may  be  carried  from  the  Invoice  and 
Sales-Books  to  the  Day-Book  separately,  if  they  are  of  large 
amounts ;  or,  we  may  with  propriety  convey  the  purchases  of 
a  month  or  week,  from  the  Invoice-Book  to  the  Day-Book,  in 
onXyone  entry ;  and  the  sales  may  be  taken  into  the  Day-Book 
in  the  same  manner. 

50.  Q.  What  advantage  is  there  in  making  monthly  entries  from  the 

Invoice  and  Sales-Books  into  the  Day-Book,  over  that  of  car- 
SI 


47.  Q. 
A. 

48.  Q. 
A, 


6t 


QUESTIONS  AND  ANSWERS. 


rying  the  purchases  and  sales  into  the  Day-Book  in  separate 
entries  ] 
A.  Considerable  time  and  space  are  saved  ;  for,  by  the  monthly 
method,  the  sales  and  purchases  go  to  the  merchandise  account 
in  totnls. 

51.  Q.  When  should  entries  be  made  in  the  Bill-Book  ? 

A.  When  notes  are  issued  or  received,  and  when  they  are  paid  or 
negotiated. 

52.  Q.  We  know  many  book-keepers  who  post  directly  from  the  Invoice, 

Sales,  and  Cash  Books,  to  the  Leger.  What  is  there  objection- 
able in  that  method  ? 
A.  When  that  method  is  pursued,  there  will  be  no  book  of  the  set 
that  will  show  a  complete  history  of  the  business,  or  a  record 
of  the  transactions  as  they  occun*ed  ;  and  if  at  any  period  the 
books  should  not  balance,  the  trouble  of  finding  the  errors 
would  be  greatly  augmented. 

Note. — There  are  some  houses  in  which  the  transactions,  particularly 
the  sales,  are  so  numerous  that  it  is  necessary  to  adopt  the  most 
abbreviated  system,  or  the  book-keeper  would  soon  be  far  in  the  rear 
of  the  business.  By  the  method  referred  to,  no  book  called  Journal 
is  used ;  but,  nevertheless,  all  the  knowledge  which  that  book  em- 
braces, is  required,  even  in  a  greater  ratio,  because  that  system 
makes  the  Cash,  Invoice,  and  Sales-Books,  serve  the  double  purpose 
of  Journals. 


53.  Q. 
A. 


54.  Q. 
A. 


55.  Q. 
A. 


56.  Q. 
A. 


57.  Q. 

A. 

58.  Q. 
A, 

59.  Q. 

A. 


What  is  a  Trial  Balance  ? 

It  is  a  sheet  which  shows  the  balances  of  all  the  accounts  in  the 

Leger,  arranged  in  two  columns — one  of  debtors,  and  one  of 

creditors. 

What  is  the  object  of  the  Trial  Balance  ? 

To  prove  the  books,  and  to  exhibit  the  balances.  If  the  posting, 
additions,  and  subtractions,  are  correct,  the  two  columns  will 
add  up  alike. 

Should  they  not  equal,  how  would  you  proceed  to  find  the  errors  1 

1st.  By  examining  the  Journal  entries,  to  see  if  the  debtors  and 
creditors  in  each  entry  equal  each  other.  2d.  By  examining 
the  posting  from  the  Journal  to  the  Leger,  and  by  re-adding 
and  re-subtracting  the  accounts  in  the  Leger.  I  would  repeat 
these,  until  I  had  found  the  error  or  errors. 

How  often  is  it  necessary  to  make  a  Trial  Balance  t 
Monthly,  or  quarterly.     Sometimes  it  is  left  until  the  end  of  a 
year,  when  it  rarely  balances. 

If  you  buy  merchandise  for  cash,  in  what  books  do  you  make 

entries  ? 
In  the  Cash,  Invoice,  and  Day  Books. 

If  you  buy  merchandise  on  credit  1 
In  the  Invoice  and  Day  Books. 

If  you  buy  merchandise  on  your  note  t 
In  the  Invoice,  Bill,  and  Day  Books. 


60.  Q, 

A, 

61.  Q. 
A, 

62.  Q. 
A. 

63.  Q. 

A. 

64.  Q. 
A, 

65.  Q. 
A. 

66.  Q. 
A, 

67.  Q. 
A. 

68.  Q. 

A. 

69.  Q. 
A. 

70.  Q. 
A. 

71.  Q. 
A, 

72.  Q. 


A. 

73. 

Q 

A, 

74. 

Q. 

A. 

75. 

A. 

76. 

A. 

77. 

A. 

QUESTIONS  AND  ANSWERS.  67 

If  you  merely  exchange  merchandise  1 
In  the  Invoice  and  Sales  Books. 

If  you  sell  merchandise  on  credit  1 
In  the  Sales  and  Day  Books. 

If  you  sell  merchandise  for  cash  ? 
In  the  Sales,  Cash,  and  Day  Books. 

If  you  sell  merchandise  to  John  Sims  on  his  note  1 
In  the  Sales,  Bill,  and  Day  Books. 

If  you  receive  money  of  John  Sims  1 
In  the  Cash  and  Day  Books. 

If  John  Sims  pays  a  note  you  hold  against  him  t 
In  the  Cash,  Bill,  and  Day  Books. 

If  you  pay  for  postages  ? 
In  a  petty  Cash-Book. 

If  you  pay  rent  of  your  store  ? 
In  the  C ash-Book  and  Day-Book. 

If  there  is  to-day  due  J.  Sims,  for  services  as  clerk  in  your  em- 
ployment, $500  ? 
In  the  Day-Book. 

Will  you  make  the  Day-Book  entry  ? 

Amount  of  salary  due  John  Sims  for  services  as  clerk, 

up  to  this  date $500  00 

What  is  your  Journal  entry  ? 

Store-Expenses  Dr. 

To  JTohn  Sims $500  00 

Suppose,  after  posting  the  above,  the  balance  of  J.  Sims*  account 
is  $200,  and  that  you  pay  it :  what  will  be  your  Journal  entry  ? 
John  Sims  Dr. 

To  Cash $200  00 

If  you  pay  the  rent  of  your  dwelling-house,  in  what  books  do 

you  enter  ? 
In  the  Cash-B6ok  and  Day-Book. 
What  would  be  your  Journal  entry  1 

Thos.  Blanchard  (my  name)         Dr. 

ToCash $250  00 

If  you  pay  your  note,  now  due,  in  what  books  do  you  make 

entries  1 
In  the  Cash,  Bill,  and  Day  Books. 

If  you  deliver  your  note  to  P.  Harris  for  balance  of  account  ? 
In  the  Bill  and  Day  Books. 

If  P.  Harris  gives  you  his  note  for  balance  of  account  t 
In  the  Bill  and  Day  Books. 

What  difference  is  there  between  those  notes  ? 
One  is  in  my  favor ;  the  other  against  me.    I  call  one  "  Bills  Re- 
ceivable ;"  the  other,  "  Bills  Payable." 


68 


QUESTIONS  AND  ANSWERS. 


QUESTIONS  AND  ANSWERS. 


60 


78.  Q.  If  P.  Harris's  note  in  your  favor  is  due,  and  remains  unpaid,  in 
what  books  do  you  make  entries  1 
In  the  Bill-Book  and  Day-Book. 

What  will  be  your  Journal  entry  f 
P.  Harris  Dr. 

To  Bills  Receivable $1,000  00 

How  can  you  call  Mr.  Harris  a  debtor,  when  you  still  hold  the 
note  ?   Does  not  the  note  owe  you  now,  as  well  as  it  did  before  ? 

I  think  not,  sir.  The  time  of  the  note  has  expired — it  is  now 
dead.  Before  the  note  was  due,  we  could  demand  nothing  of 
Mr.  Harris ;  when  it  is  due,  our  claim  begins  on  its  author : 
"  the  law  allows  it,  and  the  court  awards  it." 

Note. — We  are  aware  that  many  book-keepers  do  not  charge  the  par- 
ties to  notes  for  their  amounts  when  due ;  but  it  is  the  more  regular 
way  to  do  so.  The  party  to  a  note  over  due,  undoubtedly  owes  the 
amount,  and  interest  from  the  date  it  became  due ;  therefore  his  ac- 
count should  show  it. 


A. 

79.  Q. 
A. 

80.  Q. 
A, 


81.  Q. 
A, 

82.  Q. 
A, 

83.  Q. 
A. 

84.  Q. 
A. 

85.  Q. 

A. 

86.  Q. 
A. 


When  we  say,  "  Mr.  Harrises  note  (or  acceptance)  t*  due  and 

paid,**  what  kind  of  a  note  is  spoken  of] 
"  Harris's  note"  means  a  note  that  Harris  wrote  or  signed — a 

note  against  him,  and  not  a  note  belonging  to  him. 

If  Mr.  James  owes  you  $100,  and  you  accept  $98  for  it,  what 
will  be  your  Journal  entry  ? 

Sundries  Dr.  To  J.  James. 

Cash $98  00 

Profit  and  Loss 2  00  $100  00 

If  you  draw  on  a  person,  does  he  become  your  debtor  or  cred- 
itor, and  in  what  books  do  you  make  entries  1 

My  creditor.  I  make  entries  in  the  Day-Book ;  and  in  the  Bill- 
Book  if  the  draft  is  in  my  favor. 

Why  your  creditor  ? 

Because  I  owe  him  the  sum  for  which  I  have  drawn :  drawing 
on  him  is  drawing  from  him. 

Should  the  draft  be  returned,  in  what  books  will  you  make 

entries  ? 
In  the  Day-Book  and  Bill-Book. 

What  is  accepting  a  draft  ? 

Writing  one's  name  across  the  face  of  it,  by  which  one  agrees  to 
pay  it  when  due. 

CLOSING  ACCOUNTa 

87.  Q.  What  do  you  understand  by  closing  accounts,  or  balancing  books  ? 
A,  By  closing  accounts,  we  mean  the  act  of  rendering  the  debtor  and 
creditor  sides  of  every  account  equal.  This  is  done  by  trans- 
ferring the  balances  from  the  many  accounts  to  only  two  ac- 
counts, and  there  showing  the  result  of  the  business  in  a  form 
80  condensed  as  to  be  seen  at  one  view. 


91.  Q. 

A. 


92.  Q. 
A. 

93.  Q. 
A. 


88.  Q.  To  what  do  we  first  direct  our  attention,  in  balancing  or  closing 

books  ? 
A.  To  the  Trial  Balance. 

89.  Q.  After  that,  what  next  claims  our  attention.? 

A.  The  Balance  Sheet ;  by  which  we  show  the  result  of  our  busi- 
ness—our assets  and  liabilities,  our  gains  and  losses. 

90.  Q.  Why  is  it  necessary  to  close  the  books,  when  the  Balance  Sheet 

exhibits  the  situation  of  the  affairs  % 
A.  The  Balance  Sheet  may  suffice  for  the  closing,  when  the  books 
are  not  to  be  changed ;  but  when  the  gain  or  loss  is  to  be  divi- 
ded and  carried  to  the  partners*  accounts,  or  when  new  books 
are  to  be  brought  into  use,  the  closing  entries  in  the  Day-Book, 
Journal,  and  Leger,  become  necessary. 

What  follows  the  Balance  Sheet,  in  closing  the  books  ? 

We  proceed  then  to  make  entries  in  the  Day-Book,  composed 

from  the  contents  of  the  Balance  Sheet,  which  we  Journalize 

and  post. 

Which  side  of  the  Cash  account  can  exceed  the  other  ? 
The  debtor  side.    The  creditor  side  can  never  exceed  the  debtor, 
and  be  correct. 

Why  is  the  debtor  side  of  the  Cash  account  generally  more  in 

amount  than  the  creditor  ? 
Because  that  kind  of  property  called  cash  is  of  an  unvarying 

value :  it  comes  in  and  goes  out  of  our  possession,  or  is  bought 

and  sold,  at  the  same  price ;  because  we  can  not  pay  out  more 

money  than  we  have  received. 

94.  Q.  To  what  account  do  you  transfer  the  balances  of  property  and 

debts,  at  the  closing  of  the  books  1 
A.  To  an  account  called  "  Balances,"  opened  for  that  purpose. 

95.  Q.  To  what  account  do  you  transfer  the  balances  of  gains  and  losses, 

at  the  closing  ? 
A,  To  the  "  Profit  and  Loss"  account. 

96.  Q.  To  where  do  you  transfer  the  balance  of  the  "  Profit  and  Loss" 

account  ? 
A.  To  the  accounts  of  the  partners,  or  to  that  of  the  owner  of  the 
books. 

97.  Q.  Which  side  of  the  account  of  Bills  Receivable  can  exceed  ? 

A.  The  debtor.     The  excess  ought  to  agree  with  the  notes  on  hand, 
as  appears  by  the  Bill-Book. 

98.  Q.  Which  side  of  the  account  of  Bills  Payable  can  exceed  % 

A.  The  creditor.    The  excess  should  agree  with  the  amount  of  notes 
out  against  us,  as  appears  by  the  Bill-Book. 

99.  Q.  Is  there  more  than  one  method  of  making  an  Account-Cur- 

rent 1 
A,  There  are  three  methods :  1st,  without  interest ;  2d,  with  in- 
terest;  and   3d,  by  averaging,  to  find  when  the  balance  is 
due. 


70 


QUESTIONS  AND  ANSWERS. 


100.  Q.  Which  part  of  book-keeping  embraces  most  of  the  science  ? 
A.  That  part  called  Journalizing. 

101.  Q.  When  a  set  of  books  is  kept  by  double-entry,  and  the  book- 

keeper dispenses  with  the  Journal,  does  he  dispense  with 
Journalizing  ] 
A.  No,  sir.     The  Journalizing   must  be   done   somewhere  :   the 
principle  of  the  Journal   must  regulate  or  govern  all  his 
entries. 


J 


NOTE. 

This  book  is  designed  to  contain  a  complete  history  of  the  business. 

Entries  in  this  book  are  made  up  from  various  sources ;  those  embracing 
sales  are  taken  from  the  sales-book  ;  those  embracing  purchases  of  goods  are 
taken  from  the  invoice-book ;  cash  sums  come  from  the  cash-book ;  notes 
given  or  received  come  from  the  bill-book ;  while  others,  of  a  different  or 
various  nature,  appear  first  in  the  day-book. 

The  only  rule  I  can  give  for  making  or  composing  entries  in  the  day-book  is 
this  ;  adhere  to  the  truth,  state  the  transaction  with  its  parts  in  the  order  that 
they  occur,  use  as  few  words  as  possible,  and  let  them  be  to  the  point  or  pur- 
pose. 

From  this  book  the  transactions  pass  in  a  journalized  form,  into  the  journal. 


New   York,  January   5,   1850. 


1 


T 


Thomas  Blanchard  and  Christopher  C.  Marsh  having, 
as  per  articles  of  agreement  dated  Ist  instant,  entered 
into  partnership,  advance  the  following  capital : — 

Thomas  Blanchard  advances- 
Cash,  deposited $26,000  00 

Note  No.  1,  as  per  Bill-Book 2,000  00 


C.  C.  Marsh  advances — 

Cash,  deposited $12,000  00 

Note  No.  2,  as  per  Bill-Book 2,670  00 

Merchandise,  as  per  Invoice-Book,  fol.  1 3,125  00 

Charles  Lawrence,  balance  of  account 140  00 


' 


(( 


00 


Thomas  Blanchard  and  Christr.  C.  Marsh  are  indebted 
to  Notes  in  favor  of  sundry  persons,  as  per  Bill-Book, 
which  are  assumed,  viz. : — 

No.  1,  on  Thos.  Blanchard,  for $1,080  00 

No.  2,  on  C.  C.  Marsh,         for 1,230  00 


Paid  Cash  for  sundry  Store-Fixtures   bought  of  W. 
Wharton,  amounting  to 


8 


Sold  Merchandise  to  Paul  Harris,  at  sixty  days,  as  per 
Sales-Book,  folio  1 


10 


Sold  Merchandise  to  William  Blakeley,  on  his  Note, 
No.  3,  at  thirty  days,  as  per  Sales-Book,  folio  1 

, 12   i 


Sold  Merchandise  to  S.  H.  Lovell,  for  Cash,  as  per 
Sales*Book,  fol.  1,  amouniuig  to 


13 


Sold  Merchandise  to  Oliver  Otis  &  Co.,  to  be  paid  for 
on  19th  inht.,  as  follows ; — 

Half  in  Cash,  and  half  in  Note  at  thirty  days,  as  per 
Sales-Book 


14 


Bought  Merchandise  of  Henry  Austin,  at  thirty  days, 
as  per  Invoice-Book,  fol.  1 


10 


73 


2,310 


300 


325 


500 


125 


2,000 


1,500 


00 


00 


00 


00 


oe 


00 


00 


00 


00 


New   York,  January   14,  1850. 

Bought  Merchandise  of  Rogers  &  Brothers  for  Cash,  as 
per  Invoice-Book,  fol.  2 

16   . 

Bought  Merchandise  of  Rogers  &  Brothers,  on  our 
Note,  No.  3,  at  ninety  days,  as  per  Invoice-Book 

,    «     .  . 

Bought  of  Christopher  Bernard  an  invoice  of  Rice, 
amounting  to,  per  Invoice-Book,  $3,200 ;  and  paid  him 
as  follows : — 

In  Cash,  amounting  to $2,000  00 

In  Merchandise,  as  per  Sales-Book 1,200  00 

.  17   

Lent  Cash  to  James  Truman,  until  22d  inst 

19   

Received  of  Oliver  Otis  &  Co.,  for  balance  of  account, 
as  follows : — 

Their  Note,  No.  4,  at  thirty  days,  for $1,000  00 

In  Cash,  amounting  to 1,000  00 

» 20  

Sold  Merchandise  for  Cash,  to  sundry  persons,  as  per 
Sales-Book 

21   

Received  of  Paul  Harris  his  Note,  No.  5,  at  sixty  days, 
dated  8th  inst.,  for  bill  of  that  date 

82   

Received  Cash  of  James  Truman  in  full  for  loan  of 
17th  inst 

II    .- 

Delivered  to  Henry  Austin  our  Note,  Ntf.  4,  at  thirty 
days,  for  bill  of  14th  inst 

24  

Sold  Merchandise  this  day,  as  follows : — 
To  S.  H.  Lovell,  on  account,  as  per  Sales- 
Book $250  00 

For  Cash  to  sundry  persons 160  00 


74 


800 


2,100 


3,200 


1,000 


2,000 


250 


325 


1,000 


00 


1,500 


410 


00 


00 


00 


00 


00 


00 


00 


00 


00 


m 


2 


vl* 


New  York,  January   26,  1850. 

Sold  Merchandise  as  follows,  as  per  Sales-Book : — 

To  Oliver  Otis  &  Co.,  on  account $200  00 

To  William  Blakeley,  on  account 200  00 

28 

Lent  Cash  to  James  Truman,  on  his  Note,  No.  6,  at 

twelve  months,  endorsed  by  Paul  Harris $2,000  00 

Interest  for  one  year,  at  6  ®|of  added 121  00 

3Q 

Paid  Cash  for  our  Note,  No.  2,  in  fiivor  of  T.  P.  Cope 
&  Sons,  now  due 

February  2. 

Paid  Henry  Austin  for  our  acceptance.  No.  1,  for  $1,080, 
as  follows :—  * 

In  Merchandise,  as  per  Sales-Book $550  00 

"  Cash,  amounting  to v  •  •  • "  ^^^  ^^ 

"  Discount,  26  days  allowed,  at6^|o---«.---       4  68 

V  ■  ■ 

— — ^iC "  

Paid  Cash  for  sundry  expenses  of  Store  last  month,  as 
per  petty  Cash-Book 

4 

Shipped  per  Brig  Franklin,  Kay,   and  consigned  to 
Lockhart  &  Arrott,  New  Orleans,  to  be  sold  for  our 

account,  an  Invoice  of  Hardware $1,722  22 

Paid  Cash  for  Insurance  and  shipping  ex- 
penses       100  00 

6     -• 

Sold  to  Christopher  Bernard,  on  his  Note,  No.  7,  at  six 
months,  the  remainder  of  Hardware,  as  per  Sales-Book 

9     

William  Blakeley  has  failed ;  the  balance  of  his  account 
in  our  favor  is  $200,  for  which  we  have  received,  in 

Cash $100  00 

The  Balance  is  lost lOO  00 

X 

75 


$  400 


2,121 


1,230 


1,080 


65 


1,822 


00 


00 


00 


320 


QP 


00 


22 


GO 


200      00 


% 


\ 


■^\ 


\ 


> 


4 


New   York,   February    12,   1850. 


Bought  Merchandise  of  Haven  &  Smith,  as  per  Invoice- 
Book,  $1,240;  delivered  to  them  in  payment,  as  fol- 
lows : — 

Our  order  at  sight  on  Charles  Lawren-^e,  for.  $  140  00 
Oliver  Otis  &  Co/s  Note,  No.  4,  duo  21st 

inst.,  for : 1,000  00 

And  Cash  for  the  balance 100  00 


12 


William  Blakeley's  Note,  No.  3,  is  due  and  not  paid 

13 : 


Received  per  Steamer  Washington,  Floyd,  consigned  to 
us  by  Walter  Howard,  London,  pursuant  to  our  order 
and  for  our  account,  an  Invoice  of  Dry  Goods,  amount- 
ing to  oei,100  sterling $4,888  89 

Signed  Bonds,  Nos.  5,  6,  and  7,  to  the  Cus- 
tomhouse for  Duties ^'^^  22 

Paid  Cash  for  Freight 4ai00 


i< 


Received  of  Willian  Blakeley,  for  balance  of  his  ac- 
count of  $500,  as  follows  : 
His  Draft  on  S.  m.  Lovell,  accepted  at  thirty  days, 

for $250  00 

Interest  added  for  33  days 1  37 


Face  of  the  acceptance.  No.  8 251  37 

William  Blakeley  having  failed,  the  balance  is 

lost 250  00 


-   16 


Accepted  Draft  at  twenty  days'  sight.  No.  8,  drawn  by 
Walter  Howard,  London,  in  favor  of  Lewis  Clapier, 
for 


17 


Delivered  Merchandise  to  Henry  Austin,  in  payment 
of  our  Note,  No.  4,  due  16th  inst.,  as  per  Sales-Book  . . 


20 


Shipped  per  Steamer  Atlantic,  West,  consigned  to  Wal- 
ter Howard,  London,  pursuant  to  his  order,  dated  Jan- 
uary 2,  as  follows  : — 

» 

Forward. 
76 


$  1,240 


500 


6,533 


501 


4,444 


1500 


00 


00 


11 


37 


44 


00 


New   York,   February   20,   1850. 


5 


Brought. 

120  tierces  Rice,  420  cwt.,  at  $3.50 $1,470  00 

280  barrels  Flour,                at    4.50 1,260  00 

Paid  Cash  for  shipping  expenses 75  00 

Paid  Cash  to  Phoenix  Insurance  Co.,  for  3  °lo 

premium  on  $2,805,  and  for  policy  $1 85  15 

Our  Commission  for  shipping $70  12 

Commission  for  Insuring,  at  J  °|o 14  02  84  14 


20 


Bought  of  William  Evans,  on   acccount,  280  barrels 
Flour,  as  per  Invoice-Book 


21 


Bartered  with  Christopher  Bernard  an  Invoice  of  Dry 
^Groods  for  the  same  amount  in  Rice,  as  per  Invoice- 
'•Book 


(( 


Exchanged  our  Note,  No.  9,  at  sixty  days,  with  Chris- 
topher Bernard,  for  his  Note,  No.  9,  for  same  amount 
and  time 


23 


Sold   Merchandise   to  James  Truman,  as   per  Sales- 
Book  ;  received  payment  as  follows : — 

His  Note,  No.  10,  at  sixty  days,  for $500  00 

InCash 120  00 

The  balance  he  is  to  pay  on  the  26th  inst.,  by 

an  acceptance  for 1,000  00 


24 


Sold  Merchandise  to  Strang,  Adriance,  &  Co.,  on  their 
Note,  No.  11,  at  ninety  days,  as  per  Sales-Book 


<< 


Discounted,  at  the  Commercial  Bank,  Strang,  Adriance, 

&  Co.'s  Note,  No.  11,  for " $2,000  00 

Discount  for  93  days,  at  6  o|o 31   00 

Cash  received — — 


25 


Bought  the  S-'hooner  Josephine,  of  Captain  C.  Da- 
vis, at  $5,000 ;  delivered  to  him  in  payment  as  fol- 
lows : — 

Forward. 


77 


$2,974 


29 


1,260 


00 

r' 


1,530 


^(f^ 


800 


00 


1,620 


00 


2,000 


00 


1,969 


00 


6 


New   York,  February   26,  1850. 


Brought. 

Our  Bill  of  Exchange,  at  sixty  days*  sight,  on  Walter 

Howard,  for  £500  sterling $2,222  22 

Exchange  allowed  us,  at  8  ^l©  premium  ....      177  78 
And  Cash  for  the  balance 2,600  00 


26 


Received  of  James  Truman  his  Draft,  at  sight,  on  Wil- 
liam Evans,  which  is  accepted  and  passed  to  account, 
for 


M 


Paid  Cash  for  sundry  Bills  of  Rigging  and  repairs  for 
our  Schooner  Josephine 

27  


Shipped  per  Schooner  Josephine,  Whipple,  consigned 
to  H.  B.  Walker  &  Co.,  Port  au  Prince,  to  be  sold  for 
our  account,  as  follows : — 

An  Invoice  of  Domestic  Goods,  received  of  Irvine 
Fisher,   in   exchange   for  same   amount   in   Imported 

Goods . . , $1,200  00 

200  boxes  Soap,  4,000  lbs $  300  00 

200      "      Sperm  Candles 1,890  00    2,190  00 

Which  we  have  bought  of  J.  R.  

Dallett  &  Co.,  on  our  Note,  No.  10,  at  sixty 
days. 

144  boxes  Cheese,  bought  of  Charles  Law- 
rence on  account 288  00 

Amount  of  Freight  on  the  above,  per  our 
Schooner  Josephine 230  00 


28 


Insured,  at  the  Phoenix  Insurance  office,  our  Shipment 
to  Port  au  Prince  of  27th  inst. ;  passed  our  Note,  No. 

11,  for  2  ®|o  prem.  on  $4,028,  and  policy $  81  56 

Paid  Cash  for  Shipping  expenses 120  00 


t* 


Effected  Insurance  with  the  Atlantic  Insurance  Co.,  on 
our  Schooner  Josephine,  for  $5,000,  at  ^  ®|o  premium, 
which  we^have  paid  in  Cash  (policy  $1) 


78 


$5,000  ;  00 


1,000      00 


155 


3,908 


201 


26 


00 


00 


56 


00 


New   York,  March   2,   1850. 


Sold  Merchandise  as  per  Sales-Book,  as  follows  :— 

To  Oliver  Otis  &  Co.,  on  account $500  00 

To  William  Blakeley,  and  received  of  him  in 
payment,  Charles  Lawrence's  order  on  us  for 
the  same  amount 288  00 


(I 


Paid  Cash  for  sundry  expenses  of  Store,  as  per  petty 
Cash-Book 


Received  per  Brig  Clio,  Kirk,  consigned  to  us  by  Jo- 
seph De  Nones,  Cadiz,  to  be  sold  for  his  account,  an 
Invoice  of  Fruit,  amounting  to  $2,700. 
Paid  Cash  for  Freight  and  Duties 


tt 


Sold  for  Cash,  as  per  Sales-Book,  as  follows : — 
152  boxes  of  De  Nones'  Consignment 


Sold  of  De  Nones*  Consignment,  as  per  Sales-Book,  as 

follows : — 

To  Charles  Lawrence,  on  account — 

25  boxes  Oranges,  at  $3 $75  00 

200  jars     Olives,     at      .50 100  00 


To  Thomas  Milton,  for  Cash- 
100  boxes  Oranges,  at  $3.     . 


175  00 
300  00 


Received   Cash   for  Oliver  Otis  &  Co.'s   acceptance. 
No.  2,  at  sixty  days,  now  due 


it 


Received  of  Oliver  Otis  &  Co.,  their  Note,  No.  12,  at 

sixty  days,  for  balance  of  account $700  00 

Interest  for  63  days  added,  at  6  "|o 7  35 


Paid  Cash  to  sundry  persons  for  damages  found  in  Sales 
for  account  of  J.  De  Nones,  of  3d  and  4th  inst.  $45  00 
Made  allowance  to  Charles  Lawrence,  on  ac- 
count, on  same  Sales 10  00 


79 


$  788 


460 


456 


475 


2,670 


707 


55 


00 


45      00 


00 


00 


00 


00 


35 


00 


8 


New   York,   March   9,   1850. 

Sold  to  S.  H.  Lovell  on  account,  as  per  Sales-Bo  k,  as 
follows : — 

20  tierces  Rice,  amounting  to $245  GO 

/)0  boxes  of  De  Nones'  Fruit,  at  $3 150  00 

9 

Paid  Cash  for  our  acceptance.  No.  8,  in  favor  of  Lewis 
Clapier,  being  Walter  Howard's  Draft,  for 

Received  Cash  of  S.  H.  Lovell,  for  balance  of  account 
of  January  24th 

10 f- 

Sold  per  L.  M.  Hoffman  &  Co.,  for  Cash,  De  Nones* 
Consignment,  as  follows : — 

150  boxes  Lemons,     at  $5 $750  00 

110      "      Oranges,     at    3.80 418  00 

220  jars     Olives,        at      .50 110  00 

1,278  00 

Auctioneers*  Commission,  at  3J  ®|o 44  73 

Net  amount  received • 

— — — — — — .     II    -———————______________ 

Received  to  our  account  the  remainder  of  De  Nones*' 
Invoice  of  Fruit,  being  4,000  jars  Olives,  at  market 
price — $  .50 

12  

Received  Cash  of  Paul  Harris,  as  follows : — 

For  his  Note,  No.  5,  now  due $325  00 

For  1,000  jars  Olives,  sold  him  at  $  .52^ 525  00 

14   ■ ■ . 

Rendered  to  Joseph  De  Nones,  Cadiz,  account-sales  of 
Invoice  of  Fruit,  received  per  Brig  Clio,  from  which 
we  obtain  the  following : — 
Our  Commission  on  total  Sales,  $4,314.27,  at  5  ®|o, 

is $215  71 

Storage,  Advertising,  and  Labor 52  24 

Net  proceeds,  due  May  25  |  50 3,531  32 

* 

16 

Received  from  Lockhart  &  Arrott,  N.  Orleans,  account- 
sales  of  our  Shipment  to  them  of  Feb.  4  :  Net  proceeds 

80 


$  395 


4,444 


250 


00 


44 


00 


1,233 


2,000 


850 


27 


00 


3,799 


00 


27 


2,020      00 


♦  • 


8 


Npw    York,   March    16,   1850. 

Received  Cash  for  S.  H.  Lovell's  acceptance.  No.  8, 
being  William  Blakel^*s  Draft 

18  

Received  Cash  of  Paul  Harris,  to  be  applied  for  him  in 
buying  Merchandise  on  joint  account  with  us,  as  per 
agreement 

20  • 

Bought  <#  Bunker  &  Stan*  for  Cash,  in  joint  account 
with  Paul  Harris,  800  barrels  Flour,  as  per  Invoice- 
Book,  $4,000. 

Of  which  Paul  Harris's  half  is $2,000  00 

Our  half  is 2,000  00 

• 21 ZZIZZ 

Received  of  Paul  Harris,  to  be  sold  in  joint  account, 
500  barrels  Flour,  at  $4.75,  amounting,  per  Invoice- 
Book,  to  $2,375  ;  of  which  our  half  is 

23  

Sold  to  E.  K.  Collins  500  barrels  Flour  in  joint  account 

with  P.  Harris,  at  $6 

Received  payment   as  follows : —  ' 

Our  Note,  No.  3,  in  favor  of  Rogers  &  Brothers,  due 

April  19th,  for $2,100  00 

Interest  allowed  us  for  26  days,  at  6  °|q 9  10 

2,090  90 
Received  the  balance  in  Cash 909  10 

25  ~~~ 

:-m  —  I' ■■  I  II— 11.11.  ..I—    Mill         ■       —■I     -  M^— ^^■■^^M— I^M  »iW— ■■  II—  .^^M^illlliM— ^fc^^l^M^^i^^—— — ^— ^^IM. 

Paid  Cash  to  C.  C.  Marsh,  on  account 

26    

Bought  of  Brown  Brothers  &  Co.  their  Bill  of  Ex- 
change on  Brown,  Shipley,  &  Co.,  Liverpool,  at  twenty 

days*  sight,  for  <£  1,000  sterling $4,444  44 

Exchange,  at  8  °|o  prem.  on  $4,444.44 355  56 

Delivered  to  them  in  payment — 

400  ban-els  Flour  in  joint  account  with  Paul  Harris, 

at  $6 $2,400  00 

And  Cash  for  the  balance 2,400  00 


11 


81 


$  251 


2,000 


4,000 


1,187 


3,000 


3,000 


300 


4,800 


4,800 


37 


00 


00 


50 


00 


00 


00 


00 


00 


^0 


"S 


"^^ 


\ 


10 


8 


8 


8 


8 


New   York,   March   27,   1850. 


Sold  to  Oliver  Otis  &  Co.  200  barrels  Flour  in  j#nt  ac- 
count with  P.  Harris,  at  $6,  as  per  Sales-Book 

Received  of  them  in  payment — 

Their  Draft  at  sight,  on  Wm.  Evans,  which  is  accepted 

in  account,  for $260 

Their  Note,  No.  14,  at  sixty  days,  for 50 

And  Cash  for  the  balance 440 

— 28  ZI 


Bartered  with  Haven  &  Smith  the  balance  of  Flour 
joint  account  with  Paul  Harris — 200  barrels,  at  $6.25 
Received  of  them  in  exchange — 

227  barrels  Mackerel,  at  $5.50 $1,248  50 

And  Cash 1  50 


\ 


30 


Rendered   to   Paul  Hanis   account-sales  of  Flour  in 
joint  account,  showing  the  following  result : — 
Our  Commission    on  total  Sales,  $7,850,   at 

2 J  °  1 0 $  196  25 

Storage  on  1,300  barrels  1  mo.,  at  3  cts 39  00 

Net  proceeds,  $7,614.75 — 

Of  which  P.  Harris's  half  is  due  May  3  |  50 . .   3,807  37 

Our  half  net  proceeds  is $3,807  38  * 

Our  half  cost  is 3,187  50 

Our  net  gain  is * 619  88 


Paid  Cash  as  follows  : — 

For  sundry  expenses  of  Store  last  month,  as  per  petty 

Cash-Book $162  00 

To  George  Loder,  for  three  months'  rent  of 
"Warehouse 300  00 


Received  per  Steamer  Crescent  City,  from  Lockhart  & 
Arrott,  New  Orleans,  pursuant  to  our  order,  in  full  for 
8     proceeds  of  our  Shipment  to  them  of  4th  Feb.,  Invoice 

of  230  bales  Cotton,  amounting  to $2,020  00 

Paid  Cash  for  Freight  and  expenses 300  00 


00 


1,200      00 


1,250 


1,250 


4,662 


462 


00 


00 


50 


00 


2,320  I    00 

I 


8 


8 


8 


New  York,   April  3,   1850. 

Received  of  Irvine  Fisher,  to  be  sold  for  his  account, 
Invoice  of  300  bags  of  Laguayra  Coffee,  amounting 
to 

6 

Sold  Fisher's  Coffee  as  follows : — 
To  S.  H.  Lovell,  at  4  months,  75  bags^  as  per  Sales- 
Book $1,350  00 

To  Oliver  Otis  &  Co.,  on  account,  50  bags,  as 

per  Sales-fiook 810  00 

: 7 ZZZZZ 

Renewed  C.  Bernard's  Note,  No.  1,  for  $2,000,  now  due. 
Received  his  Note,  No.  15,  for  same  amount,  and  Cash 
for  63  days'  interest 

8 

Sold  to  H.  Burrell  &  Co.,  for  cash,  100  bags  Fisher's 
Coffee,  as  per  Sales-Book,  $1,440 ;  which  amount  we 
have  paid  over  to  Irvine  Fisher  on  account 

10   

Paid  Cash  to  sundry  persons  for  damages  found  in  Sales 
of  Fruit  on  account  of  Joseph  De  Nones,  amounting 

to $22  00 

Allowed  to  ourselves  for  defects,  &c.,  in  4,000 

jars  Olives,  taken  to  our  account  March  10  . .       40  00 

11    ZZZZI 

Received  of  S.  H.  Lovell,  for  bill  of  6th  inst.,  his  Note, 

No.  16,  at  4  months,  for 

Discounted  the  above  Note  for  Irvine  Fisher,  and  paid 

him  in  Cash $1,322  33 

In  Discount,  allowed  us 27  67 

13    ZUZZ 

Shipped  per  Brig  Pilot,  Milton,  and  consigned  to  Jo- 
seph Eaton,  Boston,  to  be  sold  for  our  account,  as  fol- 
lows : — 

115  bales  Louisiana  Cotton $2,160  00 

1000  jars  Olives,  at    .50 500  00 

50  bags  Coffee  of  Fisher's   Consignment 

taken  to  our  account ^ 720  00 

Paid  Cash  for  Insurance  and  Shipping  ex- 
penses       120  00 


$3,375 


S,160 


21 


1,440 


62 


1,350 


1,350 


3,500 


11 


00 


00 


00 


00 


00 


00 


00 


00 


83 


I 


12 


9 


9 


10 


10 


I 


New   York,   April    14,  1860. 

Received  of  Oliver  Otis  &  Co.,  for  sale  of  6th  inst,  as 

follovvrs : — 

Their  order  at  sight  on  Irvine  Fisher,  which  is  accepted 

in  account,  for $310  00 

Cash,  amounting  to 500  00  . 

15    IZZZZ 

Delivered  to  Thomas  Blanchai'd,  on  account — 

Cash,  amounting  to $500  00 

3  bags  Fisher's  Coffee,  per  Sales-Book 43  20 

16     ^ 

Sold  to  Paul  Harris,  for  Cash,  the  balance  of  Fisher's 
Coffee — 22  bags,  as  per  Sales-Book 

_-__-________-^___________— .  "  - — — — — _ 

Rendered  to  Irvine  Fisher  account-sales  of  his  consign- 
ment of  Coffee,  showing  the  following  result : — 
Total  Sales,  $4,680 ;    on    which   our  Commission,  at 
2J  o|^,  is $117  00 

Storage,  Advertising,  and  Labor 18  00 

Net  proceeds 4,545  00 

18   ZIZZZZ 

Sold  to  Thomas  Owen  &  Son,  150  tierces  Rice,  as  per 
Sales-Book 

Received  of  them  in  payment  as  follows : — 

Irvine  Fisher's  -Note  to  them,  No  17,  for $1,200  00 

And  Cash,  amountinsr  to •'.       637  50 

,,^_____  .  t(  , 

Delivered  to  Irvine  Fisher,  for  balance  of  his  account, 
as  follows : — 

His  Note,  No.  17,  due  20th  inst $1,200  00 

And  Cash,  amounting  to 245  00 

20  -    ^- — 

Bought  at  auction  of  Wilmerdings  &  Mount,  in  joint 
account  with  Henry  Austin,  500  doz.  Madeira  Wine, 

at  $10 

Delivered  in  payment,  as  follows : — 

Our  Note,  No.  12,  at  4  months,  for $2,033  33 

C.  Bernard's  Note,  No.  9,  for $800  00 

J.  Truman's  Note,  No.  10,  for 500  00    1,300  00 

Ampunt  of  our  f  interest 3,333  33 

Henry  Austin  paid  W.  &  M.  for  his  J,  jflhount- 

ing  to 1,666  67 

84 


$  810 


00 


543      20 


316 


4,680 


1,837 


1,837 


1,445 


5,000 


5,000 


80 


00 


50 


50 


00 


00 


00 


New   York,   April   21,   1850. 


10 


Paid  Cash  as  follows  :— 

For  12  lottery  Tickets $120  00 

For  Discount  on  $475  uncurrent  money,  IJ  ^'lo  •       ^  31 


24 


10 


10 


Sold  Brown  Brothers  &  Co.'s  Bill  of  Exchange  (No.  13) 
on  Brown,  Shipley,  &  Co.,  Liverpool,  drawn  for  c£l,000 

sterling $4,444  44 

Exchange,  at  8J  ojo  premium  ...      377  78    $4,822  22 

Brokerage,  |  o|o 12  06 


Received  in  payment  as  follows : — 

Our  Note,  No.  10,  in  favor  of  J.  R.  Dallett  &  Co.,  due 

May  1?%  for $2,190  00 

Interest  for  7  days  allowed  us 2  55 


Allowed  for  the  Note 2,187  45 

Cash  for  the  balance 2,622  71 


Premium  on  the  Bill,  as  above 377  78 

Paid  Brokerage,  "  12  06 


<( 


10 


Renewed  our  Note,  No.  9,  in  favor  of  C.  Bernard,  for 
$800,  by  our  Note  No.  13,  for  same  amount  and  time, 
and  paid  Cash  for  63  days'  interest  on  new  Note 

27 


Bought  at  auction  of  Gerard  &  Betts,  50  chests  Tea, 
amounting  to  $4,725 ;  and  transferred  the  same  to  J. 
Percival  for  3  °Jq  advance,  which  is  received  in  Cash. . 


« 


^      Received   Cash   for   proceeds   of   tickets    in    Lottery, 
'  bought  on  21st  inst 


10 


11 


Received  Cash  enclosed  in  an  anonymous  letter  ad- 
dressed to  us 

28 


Received  per  Schooner  Josephine,  Whipple,  from  H.  B. 
Walker  &  Co.,  Port  au  Prince,  an  invoice  of  37  tons 
St.  Domingo  Hides,  being  net  proceeds  of  our  Consign- 
ment to  them  of  Feb.  28,  account-sales  now  received, 

amounting  to $6,000  00 

Value  of  the  Freight  per^ur  Schooner 200  00 


85 


$     128 


4,810 


4,810 


365 


8 


141 


1,700 


13 


530 


6,200 


31 


16 


16 


72 


40 


75 


00 


00 


00 


f 


tjf^- 


' 


14 


11 


U 


11 


11 


11 


11 


New  York,  April   28,  1850. 


Received  per  Schooner  Josephine,  Whipple,  consigned 
to  us  by  H.  B.  Walker  &  Co.,  Port  au  Prince,  to  be  sold 
for  their  account,  an  invoice  of  20,000  feet  Mahogany, 
amounting  to  $2,400 ;  which  v^re  have  taken  to  our  ac- 
count at  the  market  price,  15  cts.  per  ft $3,000  00 

Charges : — 

Freight  per  our  Schooner .$125  00 

Expenses  paid  in  Cash 75  00 

Our  Commission  on  $3,000,  at  5  ^L    150  00       350  00 


Net  proceeds  due  H.  B.  Walker  &  Co. 

29 


Received  Cash  of  Capt.  Whipple  for  freight  per  Schr. 
Josephine,  on  her  voyage  to  Port  au  Prince 


30 


Paid  Cash  for  sundry  expenses  of  Store  this  month,  as 
per  petty  Cash-Book 


ti 


Received   Cash   of  Harmony's   Nephews  &  Co.,  for 
amount  of  Draft  on  them  at  sight,  remitted  to  us  by 

Joseph  Ruiz,  P.  Principe,  for  collection $5,000  00 

Our  Commission,  at  ^  °|q 12  50 


it 


Bought  for  Cash  of  A.  Belmont,  his  Bill  of  Exchange, 
No.  18,  at  sixty  days'  sight,  on  Rothschild  &  Co.,  Paris, 
per  order  of  H.  B.  Walker  &  Co.,  Port  au  Prince, 
to  whom  we  have  remitted  the  same  : 


Bill  for  14,062.73  francs,  exchange  at  fr.  5.32  per  dollar, 

amounting  to $2,643  37 

Our  Commission  on  $2,650,  at  J  °|o 


6  63 


tt 


Bought  for  Cash  of  B.  Blanco,  his  Draft,  No.  19,  at  15 
days'  sight,  on  Francia  &  Co.,  Cadiz,  and  remitted  the 
same  to  Joseph  De  Nones,  Cadiz,  for  balance  of  account 
due  him  in  Cadiz — $3,469.32. 

Face  of  the  Draft $3,454  80 

Exchange,  at  1^  °|q  discount 51  82 

Paid  for  the  Draft 


Interest  for  25  days  in  our  favor  on  $3,469.32,  due  J. 
De  Nones  May  25   50 


86 


$  2.650 


500 


200 


4,987 


00 


00 


00 


50 


2,650 


00 


3,402 
14 


98 
52 


11 


11 


12 


12 


12 


12 


12 


New  York,   April   30,   1850. 


15 


Bought  for  Cash  of  Moses  Taylor  &  Co.,  their  Bill  of 
Exchange,  No.  20,  at  30  days*  sight,  on  Drake  Brothers 
&  Co.,  Havana,  on  account  of  Joseph  Ruiz,  Puerto 
Principe,  to  whom  we  have  remitted  the  same : 

Face  of  the  Bill $5,050  63 

Exchange,  at  IJ  °|o  discount,  favor  J.  Ruiz,        75  75 


Paid  for  the  Bill 4.974  88 

Our  Commission  on  $5,050.63,  at  i  ^Iq 12  62  ij  $  4,987 


« 


Bought  for  Cash  of  Jacob  Little  &  Co. — 

10,500  Spanish  Dollars $10,500  00 

At  Premium  of  f  ojo 78  75 


It 


Balances  of  Interest  in  favor  of  the  following,  as  per 
accounts-current  rendered  to  this  date : — 

Thomas  Blanchard,  partner $494  16 

C.  C.  Marsh,  "         297  69 


II 


Balance  of  Interest  in  our  favor,  as  per  account-current 
rendered  to  C.  Lawrence,  to  this  date 


(( 


Balance  of  Interest  in  favor  of  Paul  Harris,  as  per  ac- 
count-current rendered  him  to  this  date 


« 


CLOSING  ENTRIES. 

Profit  and  Loss  account  must  be  debited  for  the  follow- 
ing balances,  being  losses,  as  per  Balance-Sheet : — 

Store-Fixtures,  loss $  30  00 

Store-Expenses,  loss 662  70. 

Discount  and  Interest,  loss 613  27 


(i 


Profit  and  Loss  account  must  be  credited  for  the  follow- 
ing balances,  being  gains  as  per  Balance-Sheet : — 

Merchandise,  gain $3,562  86 

Schooner  Josephine,  gain 874  00 

Commission,  gain 794  85 

Exchange,  gain 152  70 

Shipment  to  New  Orleans,    gain 197  78 

Shipment  to  P.  au  Prince,    gain 1,890  44 


10,578 


791 


2' 


1,306 


7,472 


50 


75 


85 


07 


67 


03 


63 


\ 


I 


A    '^* 


16 


New  YpRK,   April   30,   1850. 


12 


The  net  gain  accruing  from  the  business  the  last  four 
months,  as  appearT.by  the  Profit  and  Loss  account. 
IS  $8,546.48— 

Of  which  Thomas  Blanchard's  half  is $4,273  24 

Of  which  C.  C.  Marsh's  -half  is 4,273  24 


II 


12 


13 


13 


Balances  of  Property  and  Debts  in  our  favor,  as  per 
Balance-Sheet,  as  follows : — 

^*sh,  balance  on  hand $26,274 

balance  on  hand 15,000 

balance  on  hand 6,998 

valued  at 270 

^,     ,      _.  first  cost 5,000 

Charles  Lawrence,  balance  in  our  favor  ...        167 
S.  H.  Lovell,  balance  in  our  favor  . . .        395 

Walter  Howard,       balance  in  our  favor  . . .        307 

Shipment  to  Boston,  no  account-sales 3,500 

Comp.  2  Merchandise,  our  |  on  hand 3,333 


Merchandise, 
Bills  Receivable, 
Store-Fixtures, 
Schr.  Josephine, 


07 
00 
35 
00 
00 
07 
00 
62 
00 
33 


(i 


Balances  in  favor  of  Sundries,  as  per  Balance-Sheet  :— 

Bills  Payable,    Notes  outstanding $4,137  11 

Paul  Harris,      balance  in  his  favor 4,988  20 


« 


The  Balance   account  of  April  30,   1850,  shows  the 
amount  of  our  net  capital--$52,120.13;  of  which— 
Thomas  Blanchard's  share,  as  appears  by  his  account, 

n'  n  'tI^  "  i;  •  •  I $31,144  20 

<^.  C.  Marsh  s  share,  as  appears  by  his  ac- 

^o^^^'^s 2Q975  9^ 


$  8,546 


48 


61,245 


9,125 


44 


52,120 


31 


13 


14 


14 


14 


14 


14 


14 


New  York,   May   10,   1850. 


17 


Amount  of  Salaries  due  the  following  Clerks  in  our 
employment : — 

C.  J.  Martin,  from  January  5  to  5th  inst $300  00 

John  Sims,     from  February  1  to  1st  inst 200  00 


15 


Delivered  to  Paul  Harris  our  Note,  No.  16,  at. three 
months,  dated  1st  inst.,  for  part  of  balance  of  ac- 
count   $1,988  20 

Interest  added,  93  days 30  81 

16 zzzmi 


14 


Bought  of  Strang,  Adriance,  &  Co.,  50  shares  Erie 

Railroad  Stock,  at  $80  per  share $4,000  00 

Delivered  to  them  in  payment,  our  Draft  on 
Joseph  Eaton  &  Co.,  Boston,  at  three  days* 

sight,  for 4,020  10 

Exchange  allowed,  at  J  °|o  discount 20  10 


18 


Received  from  Joseph  Eaton  &  Co.,  Boston,  account- 
sales  of  our  Consignment  to  them  of  April  13th :  Net 
proceeds  


(( 


li 


Received  from  Joseph  Eaton  &  Co.,  Boston,  account- 
current  showing  a  balance  of  Interest  in  their  favor 

of $  25  00 

Also,  their  Draft,  No.  21,  at  60  days,  on  Eagle 

&  Hazard,  accepted,  for  balance  due  us 554  90 

20   ~ 


Delivered  our  Note,  No.  17,  at  seven  months,  to  the 
Atlantic  Mutual  Insurance  Co.,  for  2  °lo  premium  on 
$20,000  in  open  policy 

23   


Shipped  per  Steamer  Panama,  Bailey,  consigned  to 
Simmons,  Hutchinson,  &  Co.,  San  Francisco,  to  be  sold 
for  the  joint  account  of  Henry  Austin  and  ourselves,  as 
follows : — 

100  boxes  refined  Sugar $1,150  00 

80  M.  Havana  Segars 1,440  00 

10,500  Spanish  Dollars $10,500  00 

At  1  %  premium 105  00    10,605  00 


12 


Forward ; ....  13,195  00 

89 


$  500 


00 


2,019 


01 


4,000 


00 


4,600 


00 


579 


90 


401 


25 


V..A 


18 


14 


15 


New  York,  May  23,  1850. 

Brought $13,195  00 

Paid  Cash  for  Shipping  expenses 125  00 

Insured  at  the  Atlantic  Mutual  Insurance  Co., 

$14,654,  at  2  ^Iq  prem.  entered  on  our  Policy     293  04 

Of  which  our  half  is 6,806  52 

Of  which  Henry  Austin's  half  is 6,806  52 

30  

Bought  Merchandise  during  this  month,  as  per  Invoice- 
Book,  as  follows : — 

On  our  Notes,  viz. : — 

No.  14  to  T.  Owen  &  Son 4th,  $300  00 

"    15  to         "             "    6th,  200  00 

"  18  to  Trujillo  &  Barreiras . .  25th,  320  00 
"    19  to  Harmony's  Nephews 

&  Co 26th,  630  00 

"   20   to    Spofford,    Tileston, 

&  Co 28th,  270  00  1,720  00 

m 

On  Account — 

Of  Henry  Austin 5th,  $200  00 

•*        "  "       16th,    100  00  $300  00 

Of  James  Truman 10th, 212  00 

Of  Edward  G.  Fail  &  Co 13th, 375  00 

Of  William  Evans 18th,    110  00 

"      25th,    175  00 

"        "  "      30th,    135  00     420  00 

Of  Barclay  &  Livingston 22d 550  00 


$13,613 


13,613 


90 


04 


04 


3,577 


00 


15 


New  York,  May  30,  1850. 


15 


Sold  Merchandise  during  this  month,  as  per  Sales-Book, 
as  follows  :— 

For  Notes,  viz. ; — 

No.  22,  on  A.  G.  Beck 15th,  $352  00 

"    23,  on  W.  F.  Mott,  Jr 20th,    415  00 

"    24,  on  A.  Aranguran 27th,    611  00  1,378  00 

On  Account — 

To  S.  H.  Lovell 12th,  $310  00 

u       i.  «       17th,    19000  $500  00 

To  Paul  Harris 18th,  $150  00 

u       u  a      28th,    150  00 

«      30th,    255  00  $555  00 


If 


To  Oliver  Otis  &  Co 

"    Henry  Austin 

**   Barclay  &  Livingston 


.20th 562  50 

.22d, 337  50 

29th, 175  00 


« 


Received  Cash  during  this  month,  as  per  Cash-Book,  as 

follows : — 

For  Merchandise,   amount  of  cash  sales — 

this  month Sl,266  00 

I  For  Notes  due   and  discounted  this  month, 

viz.:— No.  12 for  $707  35 

u     14 for    50000  1,207  35 

For  Discount  and  Interest,  amount 10  50 

Of  Oliver  Otis  &  Co 23d,  $200  00 

30th,   150  00     350  00 


« 


« 


«« 


Of  Henry  Austin 28th 150  00 

Of  Charles  Lawrence 28th 167  07 

Of  S.H.Lovell 30th 300  00 


19 


$  3,508 


Ot) 


3,450    ;92 


91 


# 


*-    ■     ir    I     m 


,f 


»•' 


t  ; 


I 


I 


20 


15 


New   York,   May   30,   1850. 

Paid  Cash  during  this  month,  as  per  Cash-Book,  as 
lollows : — 

ForMerchandise,  cash  purchases  this  month..  $610  50 
For  our  Notes,  due  this  month,  viz.— 

No.  14 for  $300  00 

"    15 for    200  00     500  00 

For  Discount  and  Interest,  amount 12  75 

For  Store-Expenses,  amount 75  95 

To  Thomas  Blanchard 15th,  $  98  23 

30th,    100  00     198  23 

To  Paul  Harris,  his  Draft  at  sight— 

5th,  for  $2,500  00 
10th,    500  00  3,000  00 

To  C.  C.  Marsh 15th,    2OO  00 

"       30th,    100  00     300  00 

To  William  Evans 12th 20O  00 

"  C.J.Martin i6th 150  00 

•    John  Sims 16th 100  00 

— — — — __    «   . ____,^ _____^_ 

An  error  occurred  in  a  journal  entry  of  April  30  (page 
12),  m  which  Paul  Harris  was  charged  for  a  balance 
of  interest  of  $6.67  when  he  should  have  been  credited 


92 


J 


$5,147 


43 


IS 


34 


\ 


I 


NOTE. 

In  this  book  consists  the  science  of  hook-keeping — its  entries  are  composed 
from  those  of  the  day-hook,  and  emhrace  only  our  debtors  and  creditors,  ar- 
ranged to  facilitate  our -posting  or  transferring  them  to  the  leger.  This  method, 
having  the  day-hook  and  journal  entries  separate,  relieves  the  book-keeper  of 
a  double  task  ;  for  when  they  are  united,  he  has  not  only  to  point  out  the 
debtors  and  creditors  of  a. transaction,  but  has  also,  and  at  the  same  moment, 
to  state  all  the  circumstances,  which  must  of  necessity  be  done  in  broken  sen- 
tences. But  by  this  plan  or  arrangement  the  book-keeper  may  give  a  pure  and 
simple  relation  of  any  transaction  and  leave  the  debtors  and  creditors  for  a 
separate  entry  and  future  consideration. 

In  examining  an  account  in  the  leger,  we  need  not  go  through  this  book  to 
the  day-book,  but  we  may  refer,  for  any  explanations,  from  the  leger  (by  the 
dates),  directJv  to  the  day-book  entriea 


New  York,  January  5,  1850. 


2 

5 

4 

10 

1 
1 


6 
1 
1 


6 
2 


10 
4 


5 
4 


2 
4 


11 

4 


4 
11 


4 
2 


4 
6 


Sundries  Dr.  To  Sundries. 

Cash $38,000  00 

Bills  Receivable 4,670  00 

Merchandise 3,125  00 

Charles  Lawrence 140  00 


To  Thomas  Blanchard 28,000  00 

«   C.C.Marsh 17,935  00 


i< 


Sundries  Dr.       To  Bills  Payable. 

Thomas  Blanchard $1,080  00 

C.C.Marsh 1,230  00 


Store-Fixtures 

To  Cash, 


Dr. 


8 


Paul  Harris                          Dr. 
To  Merchandise 


10 


Bills  Receivable  Dr. 

To  Merchandise  .... 


Cash 


12  _ 
Dr. 


To  Merchandise 


13 


Olivo:  Otis  &  Co.               Dr. 
To  Merchandise 


14 


Merchandise  Dr. 

To  Henry  Austin  ... 

«« 


Merchandise 

To  Cash. 


Dr. 


16 


Merchandise                       Dr. 
To  Bills  Payable 


95 


$45,935      00 


45,935 


2,310 


325 


500 


125 


2,000 


1,500 


800 


00 


00 


300 


00 


00 


00 


00 


00 


00 


00 


2,100      00 


New  York,   January    16,   1850. 


4 

2 

4 


12 
2 


11 

5 
2 


2 
4 


5 
10 


2 
12 


11 

6 


4 

12 

2 


4 
11 
13 


5 
2 

7 


Merchandise  Dr.  To  Sundries. 

To  Cash $2,000  00 

"    Merchandise 1,200  00 


17 


James  Truman 
To  Cash 


Dr. 


_   19 


Sundries  Dr.     To  Oliver  Otis  &  Co. 

Bills  Receivable $1,000  00 

Cash 1,000  00 


20 


Cash                                     Dr. 
To  Merchandise 


21 


Bills  Receivable                  Dr. 
To  Paul  Harris 


22 


Cash  Dr. 

To  James  Truman  . . . 


It 


Henry  Austin                       Dr. 
To  Bills  Payable 


24 


Sundries  Dr.         To  Merchandise. 

S.  H.  Lovell $250  00 

Cash 160  00 


26 


Sundries  Dr.         To  Merchandise. 

Oliver  Otis  &  Co $200  00 

William  Blakeley 200  00 


28 


Bills  Receivable  Dr.  To  Sundries. 

To  Cash $2,000  00 

"    Interest 12100 


$  3,200 


1,000      00 


2,000 


250 


325 


1,000 


1,500 


410 


400 


2,121 


H 


96 


00 


00 


00 


00 


00 


00 


00 


00 


00 


New   York,  January   30,   1860. 


6 

2 


Bills  Payable 

To  Cash 


Dr. 


February  2. 


6 
4 
2 
7 


8 
2 


16 
4 
2 


5 

4 


13 
2 

8 


4 

10 
5 
2 


13 
5 


4 

13 

6 

2 


Bills  Payable  Dr.  To  Sundries. 

To  Merchandise $550  00 

«  Cash 525  32 

Discount 4  68 


it 


tt 


$  1,230 


00 


Store-Expenses 
To  Cash 


Dr. 


Shipment  to  New  Orleans     Dr.  To  Sundries. 

To  Merchandise $1,722  22 

««  Cash 100  00 


Bilb  Receivable                   Dr. 
To  Merchandise 


Sundries  Dr.     To  William  Blakeley. 

Cash SlOO  00 

Profit  and  Loss 100  00 


12 


Merchandise  Dr.  To  Sundiies. 

To  Charles  Lawrence S  140  00 

"  Bills  Receivable 1,000  00 

-  Cash 100  00 


tt 


William  Blakeley  Dr. 

To  Bills  Receivable  . 

13_ 


Merchandise  Dr.  To  Sundries. 

To  Walter  Howard $4,888  89 

"  Bills  Payable 1,222  22 

"  Cash 422  00 


13 


97 


1,080 


00 


65 


00 


1,822 


22 


320      00 


200      00 


1,240 


00 


500 


00 


6,533 


11 


5 

8 

13 
7 


13 
6 


6 
4 


13 
4 
2 
9 


4 
14 


4 
4 


5 
6 


4 

5 

2 

12 


6 

4 


5 
2 
7 


New   York,   P^ebruary   13,  1850. 


Sundries  Dr.  To  Sundries. 

Bills  Receivable $251  37 

Profit  and  Loss 250  00 


To  William  Blakeley 500  00 

"   Interest 1  37 


16 


Walter  Howard                   Dr. 
To  Bills  Payable 

_. 17 


Bills  Payable                      Dr. 
To  Merchandise 


20 


Walter  Howard  Dr.  To  Sundries. 

To  Merchandise $2,730  00 

"  Cash 160  15 

"  Commission 84  14 


«i 


Merchandise  Dr. 

To  William  Evans  . . . 


21 


Merchandise                        Dr. 
To  Merchandise 


« 


Bills  Receivable                  Dr. 
To  Bills  Payable 

23  _ 


Sundries  Dr.         To  Merchandise. 

Bills  Receivable $  500  00 

Cash 120  00 

James  Truman 1,000  00 


$     501 


501 


24 


Bills  Receivable                  Dr 
To  Merchandise 


« 


Sundries  Dr.     To  Bills  Receivable. 

Cash $1,969  00 

Discount 31  00 


98 


■li 


4,444 


1,500 


2,974 


1,260 


1,530 


800 


1,620 


2,000 


2,000 


37 


37 


44 


00 


29 


00 


00 


00 


00 


00 


00 


New  York,   February  25,   1850. 


5 


♦1^ 


7 

13 

9 

2 


14 
12 


7 
2 


16 

4 

6 

10 

7 


16 
6 
2 


7 
2 


Schooner  Josephine  Dr.  To  Sundries. 

To  Walter  Howard $2,222  22 

"  Exchange 177  78 

«  Cash 2,600  00 


26 


William  Evans  Dr. 

To  James  Truman  . . 


« 


Schooner  Josephine 
To  Cash... 


Dr. 


$  5,000    :  00 


27 


Shipment  to  Port  au  Prince    Dr.  To  Sundries. 

To  Merchandise $1,200  00 

"  Bills  Payable 2,190  00 

"  Charles  Lawrence 288  00 

"  Schooner  Josephine 230  00 


28 


Shipment  to  Port  au  Prince    Dr.  To  Sundries. 

To  Bills  Payable $  81  56 

»  Cash 120  00 


<( 


1,000 


00 


155      00 


3,908      00 


Schooner  Josephine 
To  Cash... 


Dr. 


4 
11 
10 


8 
2 


March  2. 


Sundries  Dr.        To  Merchandise. 

Oliver  Otis  &  Co $500  00 

Charles  Lawrence 288  00 


201 


56 


26 


00 


ft 


Store-Expenses 
To  Cash 


Dr. 


788 


45 


99 


00 


00 


r 


I  f 


I 


|i 


G 


New  York,    March   3,   1850. 


17 

2 


2 

17 


il7 

!io 

!  o 


De  Nones'  Consignment     Dr. 
To  Cash 


(I 


Cash  Dr. 

To  De  Nones*  Consignment . 

-  4 


Sundries  Dr.     To  De  Nones*  Consign't. 

Charles  Lawrence $175  00 

Cash 300  00 


$     460 


456 


-_5 


5 


5 
11 

7 


17 

2 

10 


12 

4 

17 


6 
2 


2 
12 


2 
17 


4 
17 


Cash  Dr. 

To  Bills  Receivable . . 


475 


00 


00 


2,670 


« 


Bills  Receivable  Dr.  To  Sundries. 

To  Oliver  Otis  &  Co $700  00 

"    Interest 7  35 


De  Nones'  Consignment     Dr.  To  Sundries. 

To  Cash S45  00 

"  Charles  Lawrence 10  00 


S.  H.  Lovell  Dr.  To  Sundries. 

To  Merchandise $245  00 

"  De  Nones*  Consignment 150  00 


(( 


Bills  Payable 

To  Cash 


Dr. 


<i 


Cash                                    Dr. 
To  S.H.  Lovell 


10 


Cash  Dr. 

To  De  Nones*  Consignment. 


« 


Merchandise  Dr. 

To  De  Nones*  Consignment. 


100 


707 


65 


395 


00 


00 


35 


00 


00 


4,444 


250 


1,233 


2,000 


44 


00 


27 


OC 


New   York,   March    12,   1850. 


2 
5 
4 


17 
9 
8 

14 


14 
16 


Cash  Dr-  '^^  Sundries. 

To  Bills  Receivable $325  00 

«*   Merchandise ^^^  ^^ 


—  14 


De  Nones*  Consignment     Dr.  To  Sundaes 

To  Commission «  ^1^  ^^ 

«•   Store-Expenses 52  24 

"  Joseph  De  Nones 3,531  32 


$     850 


00 


16 


5 


Lockhart  &  Arrott  Dr. 

To  Shipment  to  New  Orleans 


« 


Cash  I>r- 

To  Bills  Receivable. . 


3,799 


27 


2,020 


00 


18 


2    I  Cash                                      r>r. 
10  To  Paul  Harris 

20  - 


2 
18 
10 


18 
10 


To  Cash. 


Sundries  1^**. 


251 


37 


2,000 


21 


Company  1  Merchandise     Dr. 
To  Paul  Harris 


00 


00 


-23 


6 
2 

18 
7 


1 
2 


Sundries 
Bills  Payable 
Cash 


Dr. 


To  Sundries. 

82,100  00 

909  10 


1,187 


50 


To  Company  1  Merchandise 3,000  00 

«♦   Interest ^  ^Q 


25 


3,009 


3,009 


C.  C.  Marsh 

To  Cash 


Dr. 


300 


10 


10 


00 


101 


r^ 


m 


i 


Nfitv  York,   Ma 


T0 

Aarch 


V 


26,    1850. 


5 
9 

18 
2 


18 

14 

5 

2 


18 
4 
2 


18 
9 
8 

10 

8 


Sundries  Dr.  To  Sundries. 

Bills  Receivable $4,444  44 

Exchange 355  56 


To  Company  1  Merchandise 2,400  00 

«'  Cash 2,400  00 


27 


Sundries  Dr.     To  Comp.  1  Merchandise. 

William  Evans $260  00 

Bills  Receivable 500  00 

Cash 440  00 


-28 


Sundries  Dr.     To  Comp.  1  Merchandise. 

Merchandise $1,248  50 

Cash 1  50 


.30 


8 
2 


4 

14 

2 


17 
12 
11 


Company  1  Merchandise     Dr.  To  Sundries. 

To  Commission $  196  25 

"  Store-Expenses 39  00 

"  Paul  Harris 3,807  37 

"  Profit  and  Loss 619  88 


April  1. 


Store-Expenses 
To  Cash 


Di 


Merchandise  Dr.  To  Sundries. 

To  Lockhart  &  Arrott $2,020  00 

"  Cash 300  00 


$  4,800     I  00 


Sundries  Dr.     To  Fisher's  Consign't. 

S.  H.  Lovell $1,350  00 

Oliver  Otis  &  Co 810  00 


tfm 


4,800 


00 


1,200      00 


1,250 


00 


4,662 


462 


50 


00 


2,320 


2,160 


00 


00 


New   York,   April  7,  I860. 


2 

7 


15 
17 


14 
2 
4 


Cash 


Dr. 


To  Interest 


8 


I 


Irvine  Fisher  Dr. 

To  Fisher's  Consignment. 


$    21 


10. 


Joseph  De  Nones  Dr.  To  Sundries 

ToCash «22  00 

«  Merchandise 40  00 


11 


5 
15 

12 
2 
7 


16 

4 

17 

2 


11 

15 

2 


Sundries  Dr.  To  Sundries^ 

Bills  Receivable ^'35000' 

Irvine  Fisher 1'350  00 


To  S.H.  Lovell 1.350  00 

"  Cash 1'322  33 

"  Discount 27  67 


13 


Shipment  to  Boston  Dr.  To  Sundries 

^       to  Merchandise ^2,660  00 

**  Fisher's  Consignment 720  00 

«  Cash 120  00 


14 


Sundries  l^r.     1  o  uiiver  v^us  o.  ^ 

Irvii^  Fisher ^^10 

Cash 

'  16 


Dr.     To  Oliver  Otis  &  Co. 

00 
500  00 


1 

2 

17 


2 
17 


17 
9 
8 

15 


Thomas  Blanchard  Dr.  To  Sundries. 

ToCash $500  00 

"  Fisher's  Consignment 43  20 


Cash 


16 

Dr. 
To  Fisher's  Consignment. 


<i 


Fisher's  Consignment         Dr.  To  Sundnes. 

To  Conmiission $  H^  00 

*»  Store-Expenses 18  00 

"   Irvine  Fisher 4,545  00 


103 


00 


1.440 


62 


00 


00 


2,700 


2,700 


00 


00 


3,500 


00 


810      00 


543 


20 


316 


80 


4,680 


00 


10 


New  York,   April   18,  1850. 


4  !    Sundries 


Dr.         To  Merchandise,     i 


T 


5  .    Bills  Receivable $1,200  00 

2      ^ash 637  50  II   $  1,837 


<< 


15      Irvine  Fisher  Dr.  To  Sundries. 

To  Bills  Receivable $1,200  00 

"  Cash 245  00 


5 


20 


18      Company  2  Merchandise     Dr.  To  Sundries. 

6  To  Bills  Payable $2,033  33 

^  "  Bills  Receivable 1,300  00 


21 


3  Sundries  Dr.  To  Cash. 

8  Profit  and  Loss $120  00 

j      9|  Exchange *.**'*       §31 

,  ---    24,-. .,      — Z 

\  Sundries 


,     r».„    T,       ,  ,                          ^^'               ^^  Sundries. 
6  !    Bills  Payable $3^90  qq 

^»8h 2,622  71 ' 


5 
9 

7 


To  Bills  Receivable 4,444  44  ! 

"  Exchange '355  72  j 

"  Interest _  2  55 


50 


1,445 


00 


3,333 


128 


33 


4,812 


71 


4,812;    71 


8 


141 


40 


76 


1,700 


00 


530 


00 


Merchandise                        Dr.              To  Sundries. 
To  Shipment  to  Port  au  Prince  .  .$6,000  00 
"   Schooner  Josephine 2OO  00  |       6,200  j     00 

104  '' 


r 


New  York,  April  28,  1860. 


IX 


4 

15 
7 
3 
9 


3 

7 


8 
3 


Merchandise  Dr.  To  Sundries. 

To  H.  B.  Walker  &  Co $2,650  00 

"  Schooner  Josephine 125  00 

"  Cash 75  00 

"  Commission 150  00 


29 


Cash  Dr. 

To  Schooner  Josephine 

_   30 


Store-Expenses 
Cash 


xpei 
To 


Dr. 


3 

15 

9 


15 
3 

9 


14 
3 
9 
7 


15 
3 
9 


9 
3 


7 
1 
1 


10 
7 


i< 


^^^      _  Dr.  To  Sundries. 

To  Joseph  Ruiz $4,987  50 

"  Commission 12  50 


$  3,000 


00 


(I 


H.  B.  Walker  &  Co.  Dr.  To  Sundries. 

4.  To  Cash $2,643  37 

6  63 

M 


**  Commission 


Joseph  De  Nones  Dr.  To  Sundries. 

ToCash $3,402  98 

"  Exchange 51  82 

"   Interest 14  52 


M 


Joseph  Ruiz  Dr.  To  Sundries. 

ToCash $4,974  88 

"  Commission 12  62 


Exchange 

ToCash 


« 


Dr. 


« 


Interest  Dr.  To  Sundries. 

To  Thomas  Blanchard $494  I6 

"  C.  C.  Marsh 297  59 


Charles  Lawrence 
To  Interest. 


M 


Dr. 


14 


lOff 


500      00 


200 


00 


5,000      00 


2,650 


3,469 


4,987 


78 


791 


00 


32 


50 


75 


85 


2      07 


'*' 


4 


12 


10 
7 


8 
6 
7 
8 


8 
4 
7 
9 
9 
16 
16 


8 
1 
1 


19 

3 

4 

5 

6 

7 

10 

12 

13 

16 

18 


19 

6 

10 


19 
1 
1 


New  York,   April  30,  1850. 


Paul  Harris 

To  Interest. 


Dr. 


<i 


Profit  and  Loss  Dr.  To  Sundries. 

To  Store-Fixtures $  30  GO 

Discount  and  Interest 613  27 

Store-Expenses 662  76 


« 


11 


*« 


Sundries 


Dr.     To  Profit  and  Loss. 


Merchandise $3,562  86 

Schooner  Josephine 874  00 

Commission 794  95 

Exchange 152  70 

Shipment  to  New  Orleans 197  78 

Shipment  to  Port  au  Prince 1,890  44 


«( 


Profit  and  Loss  Dr.  To  Sundries. 

To  Thomas  Blanchard $4,273  24 

"  C.C.  Marsh 4,273  24 


tt 


« 


(( 


(» 


It 


tt 


tt 


u 


tt 


tt 


Balances  of  April  30, 1850     Dr.  To  Sundries. 

ToCash $26,274  07 

Merchandise 15,000  00 

Bills  Receivable 6,998  35 

Store-Fixtures 270  00 

Schooner  Josephine 5,000  00 

Charles  Lawrence 167  07 

S.  H.  Lovell 395  00 

Walter  Howard 307  62 

Shipment  to  Boston 3,500  00  '  | 


M 


Sundries  Dr.     To  Balance  of  April  30, 1850. 

Bills  Payable $4,137  11 

Paul  Harris 4,988  20 


i« 


Sundries  Dr.     To  Balance  of  April  30, 1850. 

Thomas  Blanchard $31,144  20 

C.C.  Marsh 20,975  93 


S 


1,306 


67 


03 


7,472 


8,546 


63 


48 


Company  2  Merchandise 3,333  33   :    61,245 


9,125 


52,120 


44 


31 


13 


106 


New  York,  May   10,  1860. 


8 

20 
20 


6 

10 

7 


20 
7 
5 


21 
6 


21 

11 

4 

3 

21 

9 


4 
6 
11 
12 
18 
14 
19 


Store-Ejcpenses  Dr.  To  Sundries. 

To  C.  J.  Martin $300  00 

"  John  Sims 200  00 

= 15 


Sundries  Dr.       To  Bills  Payable. 

Paul  Harris $1,988  20 

Interest 30  81 


16 


20  Sundries  Dr.     To  Joseph  Eaton  &  Co. 

21  Erie  Railroad  Stock $4,000  00 

9      Exchange 20  10 

18       ^^^^^^^^^^ 

20      Joseph  Eaton  &  Co.  Dr. 

16  To  Shipment  to  Boston 

..-■  tt    — — — — ^— — — — — 


Sundries  Dr.     To  Joseph  Eaton  &  Co. 

Interest $  25  00 

Bills  Receivable 554  90 


(I 


Insurance 


Dr. 


To  Bills  Payable 


23 


Sundries  Dr.  To  Sundries. 

Shipment  to  San  Francisco  (joint) $6,806  52 

Henry  Aiistir. 6,806  52 

To  Merchandise 2,590  00 

Cash 10,625  00 

Exchange 105  00 

"    Insurance 293  04 


tt 


tt 


30 


Merchandise  Dr.  To  Sundries. 

To  Bills  Payable $1,720  00 

300  00 
212  00 
375  00 
420  00 
550  00 


Henry  Austin 16th, 

•*  James  Truman 10th, 

••  E.  G.  Fail  &  Co 13th, 

"  William  Evans 30th, 

"  Barclay  &  Livingston  . .  .22d, 


107 


$  500 


2,019 


4,020 


4,600 


579 


401 


13,613 


13,613 


3,577 


13 


00 


01 


10 


00 


90 


25 


04 


04 


00 


'.,  > 


14 


4 
5 
12 
10 
11 
11 
19 


3 

4 

6 

7 

11 

11 

10 

12 


3 

4 

6 

7 

8 

I 

10 

1 

14 

20 

20 


7 
10 


New  York,  May  30,  1860. 


Sundries  Dr.         To  Merchandise. 

Bills  Receivable 81,378  GO 

S.  H.  Lovell 17th,      500  00 

Paul  Harris 30th,      555  00 

Oliver  Otis  &  Co 20th,      562  50 

Henry  Austin 22d,       337  50 

Barclay  &  Livingston 29th,      175  00 

— it   

Cash  Dr.  To  Sundries. 

To  Merchandise $1,266  00 

"  Bills  Receivable 1,207  35 

"  Discount  and  Interest 10  50 

"  Oliver  Otis  &  Co 30th,      350  00 

"  Henry  Austin 2Sth,      150  00 

"  Charles  Lawrence 28th,      167  07 

"  S.  H.  Lovell 30th,      300  00 

—————— ————^■^— ——  *'    — i—— _— ___________^__ 

Sundries  Dr.  To  Cash. 

Merchandise $  qiq  50 

Bills  Payable 500  00 

Discount  and  Interest 12  75 

Store-Expenses 75  95 

Thomas  Blanchard 30th,      198  23 

Paul  Harris lOth,  3,000  00 

C.  C.  Marsh 30th,      300  00 

William  Evans 12th,      200  00 

C.  J.  Martin i6th,      150  00 

JohnSims i6th,      100  00 

«( 

Interest  Dr. 

To  Paul  Harris 


108 


$  3,508 


3,450 


5.147 


13 


V 


00 


92 


4S 


34 


/ 


NOTE. 

This  is  the  Book  of  Accounts  ;  the  book  that  shows  the  results  of  all  our 
mercantile  transactions,  condensed  and  brought  together  under  their  different 
heads.  On  one  folio  we  may  see  what  our  merchandise  cost  and  what  it  sold 
for  ;  on  another,  the  amount  of  our  notes  issued  and  redeemed  ;  on  another, 
the  amounts  a  person  owes  us  and  those  we  owe  him.  Thus  we  may  turn 
over  its  pages  and  see  at  one  view  the  amounts  that  all  persons,  properties,  or 
objects,  and  branches  of  our  business,  owe  to  us  or  have  cost  us,  and  all  that 
we  owe  to  them  or  that  they  have  produced  us. 

The  balance  sheet  (designed  to  show  the  state  of  our  affairs),  exhibiting  our 
assets  and  liabilities,  our  gains  and  losses,  and  our  net  capital,  is  made  out 
from  this  book. 

The  trial  balance  (a  paper  made  to  prove  the  postings,  additions,  and  subtrac- 
tions in  this  book),  is  made  out  from  this  book,  monthly  or  quarterly. 

The  entries  in  this  book  are  brought  from  the  journal,  daily,  weekly,  or 
monthly,  as  occasions  require. 

Accounts-current  are  made  from  this  hook  with  reference  from  the  accounts 
(by  dates)  direct  to  the  day-book  for  explanations. 


Index. 


Austin,  Henry H 


K. 

Evans,  William 14 

Exchange ^ 

Erie  Railroad  Stock 21 

Eaton  &  Co.,  Joseph 20 


B. 


Bills  Receivable 5 

Blanchard,  Thomas 1 ; 

Bills  Payable ^\ 

Blakeley,  William 13 

Balance  of  April  30,  1850 19 

Barclay  &  Livingston 19 


C. 

Cash 3,2 

Commission 9 

Company  1  Merchandise 18 

Company  2  Merchandise 18 


•» 


D. 

Discount  and  Interest 7 

De  Nones'  Consignment 17 

De  Nones,  Joseph 14 


F. 

Fisher's  Consignment 17 

Fisher,  Irvine 15 

Fail  &  Co.,  E.  G 18 


G 


H. 

Harris,  Paul.... 
Howard,  Walter 


.10 
.13 


111 


! 


k 


Index. 


I.J. 

Interest 7 

Insurance 21 

N. 

K. 

1 

O 

Otis  &  Co.,  Oliver 11 

Lawrence,  Charles 10 

Lovell,  S.  H 12 

Lockhart  &  Arrott 14 

P. 

Profit  and  Loss 8 

* 

• 

M. 

* 

•  Merchandise 4 

Marsh,  C.C 1 

Martin,  C.  J 20 

i 

112 


Index. 


I 


Ruiz,  Joseph 


16 


V. 


s. 

Store-Fixtures 6 

Store-Expenses 8 

Shipment  to  New  Orleans 16 

Schooner  Josephine 7 

Shipment  to  Port  au  Piince 16 

Shipment  to  Boston 16 

Sims,  John. 20 

Shipment  to  San  Francisco 21 

T. 

Truman,  James 18 


U. 


W. 

Walker  &  Co.,  H.  B. 


15 


Z. 


15 


113 


1 


Dr. 


1850. 

Jan. 
April 


IBSO. 

May 


5 
15 


30 


30 


To  Bills  Payable 
•*'  Sundries 


"  Balance 


To  Cash 


Dr. 


1890. 

Jan. 
March 

April 


5 
26 

30 


1850. 


May 


30 


To  Bills  Payable 
"  Cash 

"  Balance 


To  Cash 


!H 


Thomas 


1 

9 
13 


$  1,080 
543 

31,144 


32,767 


15      t     198 


00 
20 

20 
40 

28 


Christopher 


1 

7 


15 


8  1,230  I  00 
300  I  00 


20,975 


93 


22,505      93 


S     300  I  OC 


Blanchard. 


18M. 

Jan. 

April 
it 


6   I  By  Sundries. 
30   I     "  Interest. 


I860. 

April 


"  Profit  and  Loss 


30   1  By  Balance. 


C.  Marsh. 


1880. 

Jan. 


April       30 


«t 


30 


By  Sundries 
**  Interest 
**  Profit  and  Loss 


r 
I 

■■III    mmmin       i        ■     I  i^mmmmm 

1850.         { 

April     ^  30 


By  Balance 


115 


Cr. 


1 
12 
12 


$28,000 

494 

4,273 

32,767 


31,144 


00 
16 
24 

40 
20 


Cr. 


I 

I 


If 


I 


Dr. 


Cash. 


Cr. 


•      ! 


1850. 

Jan. 

5 

M 

12 

«• 

19 

•« 

20 

M 

22 

«< 

Feb. 

24 

9 

« 

23 

« 

24 

March 

3 

•1 

4 

<• 

5 

<« 

9 

«• 

10 

•1 

.12 

«< 

16 

u 

18 

u 

23 

l« 

27 

«« 

28 

April 

7 

it 

14 

M 

U 

M 

18 

To  Sundries 

"  Merchandise 

"  Oliver  Otis  &  Co "- .  • 

*•  Merchandise 

"  James  Truman 

"  Merchandise 

40,096  00 

"  William  Blakeley 

"   Merchandise 

"  Bills  Receivable 

4S,TM  00 

"  De  Nones*  Consignment 

"  De  Nones*  Consignment 

"  Bills  Receivable 

"  S.  H.  Lovell 

"  De  Nones*  Consignment 

"  Sundries 

"  Bills  Receivable 

"  Paul  Harris 

"  Sundries 

"  Company  1  Merchandise 

"  Company  1  Merchandise 

*■         ''  M/M5M 

"  Interest 

**  Oliver  Otis  &  Co 

"  Fisher's  Consignment 

"  Merchandise 


Carried  forward. 
116 


1 
1 
2 
2 
2 
2 
3 
4 
5 
6 
6 
6 
6 
6 
7 
7 
7 
7 
8 
8 
8 
9 
9 
10 


$38,000 
125 

1,000 
250 

1,000 
160 
100 
120 

1,969 
456 
300 

2,670 
250 

1,233 
850 
251 

2,000 
909 
440 
1 
21 
500 
316 
637 


00 

00 

00 

00 

00 

00 

00 

00 

00 

00 

00 

00 

00 

27 

00 

37 

00 

10 

00 

50 

00 

00 

80 

50 


53,560 


ISftt. 

Jan. 


«« 


If 


M 


«f 


« 


Feb. 


u 


u 


M 


it 


U 


M 


U 


«l 


March 


(( 


<• 


II 


•I 


11 


April 


II 


M 


II 


II 


II 


7 

14 

16 

17 

28 

30 

2 

2 

4 

12 

'13 

20 

25 

26 

28 

28 

2 

3 

7 

9 

20 
25 
26 
2 
2 
10 
11 
13 
15 
18 


By  Store-Fixtures 

"  Merchandise 

"  Merchandise 

"  James  Truman - 

"  Bills  Receivable 

"  Bills  Payable 

«  Bills  Payable 

**  Store-Expenses 

'»  Shipment  to  New  Orleans  . . 

"  Merchandise 

"  Merchandise 

"   Walter  Howard 

"   Schooner  Josephine 

"  Schooner  Josephine 

"  Shipment  to  Port  au  Prince. 

"  Schooner  Josephine • 

"   Store-Expenses 

"  De  Nones*  Consignment — 
"  De  Nones*  Consignment- . . 

"  Bills  Payable 

**  Sundries 

«  C.C.  Marsh 

"  Sundries 

"  Store-Expenses 

"  Merchandise - 

"  Joseph  De  Nones 

"  Sundries 

"  Shipment  to  Boston 

"  Thomas  Blanchard 

"  Irvine  Fisher 


7,990  00 


ii^an«7 


t3,S9T91 


54 


Carried  forward . 


i:7 


1 
1 

2 

2 

2 

3 

3 

3 

3 

3 

3 

4 

5 

5 

5 

5 

5 
6 
6 
6 
7 
7 
8 
8 
8 
9 
9 
9 
9 
10 


300 
800 
2,000 
1,000 
2,000 
1,230 
525 
65 
100 
100 
422 
160 
2,600 
155 
120 
26 
45 
460 
45 
4,444 
4,000 
300 
2,400 
462 
300 


00 

00 

00 

00 

00 

00 

32 

00 

00 

00 

00 

15 

00 

00 

00 

00 

00 

00 

00 

44 

00 

00 

00 

00 

00 


22  I  00 

1,322  i  33 

120  I  00 

500  00 

245  00 

26,269  24 


I 

I 


18S0. 

April 


« 


<i 


•I 


M 


«l 


24 

27 
27 
27 
29 
30 


1850. 

April 
May 


Dr.  

Brought  forward 

To  Sundries 

"  Merchandise , 

"  Profit  and  Loss 

"  Profit  and  Long , 

"  Schooner  Josephine 

**  Sundries 


30 
30 


To  Balance 
"  Sundriae 


lit 


10 
10 
1( 
10 

11 
11 


Cash. 

$53,560 

2,622 

141 

1,700 

530 

500 

5,000 


14 


64 

71 
75 
00 
00 
00 
00 


64,055 


26,274 
3,450 


07 
92 


« 


April 


M 
M 
<« 
M 
M 
M 


I8S(». 

May 


21 
24 
28 
30 
30 
30 
80 
30 
30 


23 
30 


Brought  forward 

By  Sundries 

"  Interest 

"  Merchandise 

"  Store-Expenses 

"  H.  B.  Walker  &  Co 

"  Joseph  De  Nones 

"  J.  Ruiz 

"  Exchange 

«r,7ao« 

"  Balance 

By  Sundries 

**  Sundries 


119 


Cr. 


10 
10 

ir 

11 

11 

11 

11 

11 

12 


13 
14 


$26,269 

128 

8 

75 

200 

2,643 

3,402 

4,974 

78 

26,274 


24 
31 
40 
00 

00 
37 

98 
88 
75 
07 


64,055      00 


I  $10,625 
5,147 


00 
43 


Dr. 


Merchandise 


Cr. 


1850. 

Jan. 


M 


U 


M 


Feb. 


M 


March 


«< 


April 


<( 


ISSO. 


5 


14 
14 
16 
16 

12 
13 
20 
21 

10 
28 
2 
28 
28 
30 


To 


It 


tt 


(I 


tt 


tt 


tt 


It 


tt 


tt 


tt 


tt 


!      tt 


tt 


Sundries 

Henry  Austin 

Cash 

Bills  Payable 

Sundries 

10,735  00 

Sundries 

Sundries 

William  Evans 

Merchandise 

ujns  11 
De  Nones*  Consignment 

Company  1  Merchandise 

HM8  61 

oundnes 

Sundries 

Sundries 

MgOM  61 

Profit  and  Loss 


Dollars 


April       30      To  Balance 
May        30        "  Sundries. 


30 


tt 


J  ash 


1 
1 
1 
1 
2 
3 
3 
4 
4 
6 
7 
8 
11 
11 


13 
14 


$  3,125 
1,500 
800 
2,100 
3,200 
1,240 
6,533 
1^260 
1,530 
2,000 
1,248 
2,320 
6,200 
3,000 
3,562 


39,619 


t 


3,577 
610 


00 
00 
00 
00 
00 
00 

11 

00 
00 
00 
50 

00 
00 
00 
86 


47 


15,000    !oo 


00 
50 


1850. 

Jan. 
tt 

tt 

tt 

« 

« 

(« 

Feb. 
tt 

u 
tt 

tt 
tt 
tt 


tt 

March 
«i 

tt 

April 
<f 

tt 
tt 
tt 


1850. 

May 


II 


8 

10 

12 

13 

16 

20 

24 

26 

2 

4 

6 

17 

20 

21 

23 

24 

27 

2 

9 

12 

10 

13 

18 

27 

30 


.20 


23 
30 
30 

IC 


By 


(( 


tt 


It 


tt 


tt 


l( 


It 


tt 


<» 


(( 


(( 


<( 


tt 


tt 


tt 


tl 


<( 


tt 


(< 


(t 


tt 


Paul  Harris 

Bills  Receivable 

Cash 

Oliver  Otis  &  Co 

Merchandise 

Cash 

Sundries 

Sundries 

Bills  Payable ..., 

Shipment  to  New  Orleans  . . 

Bills  Receivable 

Bills  Payable 

Walter  Howard 

Merchandise 

Sundries 

Bills  Receivable 

Shipment  to  Port  au  Prince , 

Sundries 

S.  H.  Lovell 

Cash 

Joseph  De  Nones 

Shipment  to  Boston 

Sundries 

Cash 

Balance 


6,310  00 


18,383  33 


19,940  33 


Uja9  41 


By  Sundries 
"  Sundries 
"  Cash  .  - . 


1 

1 

1 

1 

2 

9 

2 

2 

3 

3 

3 

4 

4 

4 

4 

4 

5 

5 

6 

7 

9 

9 

10 

10 
12 


13 
14 
14 


$  325 

500 
125 
2,000 
1,200 
250 
410 
400 
550 
1,722 
320 
1,500 
2,730 
1,530 
1,620 
2,000  ; 
130  ! 
788} 
245 
525  ■ 
40  i 
2,660  . 
1^37  I 

141 

15,000 


39,619 


$  2,590 
3,508 
1,266 


00 
00 

00 

00 

00 

00 

00 

00 

00 

22 

00 

00 

00 

00 

00 

00 

00 

00 

00 

00 

00 

00 

50 

75 

00 

_47 

00 
00 
00 


i21 


/ 


^ 


!• 


185a 
Jan. 


<« 


M 


M 


II 


f 


Feb. 

<c 
(I 
(I 
t( 

March 
« 

« 

April 

M 


1850. 

April 
May 


u 


Dr. 


5 
10 
19 
21 
28 

6 
13 
21 
23 
24 

5 
26 
27 
11 
18 


30 
18 
30 


To 


Sundries 

Merchandise 

Oliver  Otis  &  Co 

Paul  Harris 

Sundries 

Merchandise 

Sundries 

Bills  Payable 

Merchandise 

Merchandise 

Sundries 

Sundries 

Company  1  Merchandise 

Sundries 

Merchandise 


8/lftOO 


18,487  37 


1S,199  10 


1« 


To  Balance 

"  J.  Eaton  &  Co. 
"   Merchandise  . . 


Bills 


1 
1 

2 
2 
2 
3 
4 
4 
4 
4 
6 
8 
8 
5 
10 


13 
14 


4,670 

00 

500 

00 

1,000 

00 

325 

00 

2,121 

00 

320 

00 

251 

37 

800 

00 

500 

00 

2,000 

00 

707 

S5 

4,444 

44 

500 

00 

1,350 

00 

1,200 

00 

i£S 


20,689      16 


6,998      35 

554      90 

1,378    iOO 


Receivable. 


Cr. 


1850. 

Feb. 

12 

« 

12 

« 

24 

March 

5 

<( 

12 

i< 

16 

April 

18 

ti 

20 

M 

23 

U 

30 

« 

1850. 

May 

30 

• 

By  Merchandise 

"   William  Blakeley 

"  Sundries 

"  Cash 

«  Cash 

"  Cash 

"  Irvine  Fisher 

"  Company  2  Merchandise 
"  Sundries 

"   Balance 


8,600  00 


6,74S3r 


13,690  81 


Dollars 


30      By  Cash 


123 


3 

3 

5 

6 

7 

7 

10 

10 

10 

12 


14 


$  1,000 

500 

2,000 

2,670 

325 

251 

1,200 

1,300 

4,444 

6,998 


20,689 


$  1,207 


00 
00 
00 
00 
00 
37 
00 
00 
44 
35 


16 


35 


J 


I 

1 


6 

18S0. 

Jan. 
Feb. 

u 

March 
«« 

April 
« 


18S0. 


Dr. 


Bills 


30      To  Cash 

2        "  Sundries 

17  j   "  Merchandise. 

9        "   Cash 

23  "  Sundries 

24  "  Sundries 

30  "  Balance  ... 


a,Biooo 


10,364  44 
»,644  44 


May        30      To  Cash 


3 

3 
4 
6 
7 
10 


1,230 
1,080 
1,500 
4,444 
2,100 
2,190 
4,137 


6,681 


14      $    500 


ti 

it 


Dr. 


Store 


00 
00 
00 
44 
00 
00 
11 


55 


00 


1850b 

1 

1 

Jan. 

7 

To  Cash 

1 

t    300 

00 

300 

00 

1850. 

April 

30 

To  Balance 

1    270 

ft 

00 

• 

I?* 


Payable. 


Cr. 


1850. 


Jan. 


<( 


« 


Feb. 

M 
<l 
f< 
it 

April 


16 
I  22 
'  13 
16 
21 
27 
28 
20 


1850. 

April       30 

May         16 

18 

«  30 


By  Sundries 

"  Merchandise 

"  Henry  Austin ^ 

'•  Merchandise 

"   Walter  Howard 

"  Bills  Receivable 

"  Shipment  to  Port  au  Prince. 
"  Shipment  to  Port  au  Prince . 
"  Company  2  Merchandise  . . . 


64)10  30   t 


14,048  S3 
16,061  66 


By  Balance  . . . . 

"  Sundries 

"  Insurance  .  - . 
"  Merchandise. 


1 
1 
2 
3 
4 
4 
5 
5 


13 

ri3 

13 


$2,310 
2,100 
1,500 
1,222 
4,444 
800 
2,190 
81 
2,033 


16,681 


$  4,137 

2,019 

401 

1,720 


Fixtures. 


Cr. 


1880. 

April 


44 


30      By  Profit  and  Loss 


30 


"  Balance 


125 


00 
00 
00 
22 
44 
00 
00 
56 
33 

55 

11 

01 
25 
00 


00 
00 

00 


«& 


i 


1850. 


r  ' 


t 


Dr. 


Discount    and 


Dr. 


Feb. 

25 

■  ti 

26 

$t 

28 

April 

30 

1850. 

April 

1 

30 

1 

Schooner 


To  Sundries 

"  Cash , 

"  Cash 

"  Profit  and  Loss 

Dollars 

To  Balance  

126 


5 

$  5,000 

5 

155 

5 

26 

12 

874 

6,055 

$  5,000 

00 
00 
00 
00 

00 
00 


Interest. 


isso. 
Jan. 

Feb. 

March 

<( 

April 
«< 

it 

t» 

it 

ti 

M 


1850. 

May 


28 

2 

13 

5 

23 

7 

11 

24 

30 

30 

30 

30 


30 


Josephine. 


1850. 

Feb. 

27 

1 

April 

28 

*t 

28 

«i 

29 

II 

30 

• 

Cr. 


By  Bills  Receivable 

"  Bills  Payable 

"  Sundries 

187  06 

"  Bills  ^ceivable 

"  Sundries 

^       ,  143  60 

"  CmJi 

"  Sundries 

"  •''Sundries 

P  Joseph  De  Nones 

\  Charles  Lawrence 

"  Paul  Harris 

817  98 

"  Profit  and  Loss 

Dollars 

By  Cash 


2 
3 

4 

G 

7 

8 

9 

10 

11 

12 

12 

12 


14 


121 

4 

1 

7 

9 

21 

27 

2 

14 

2 

6 

613 


831 


t     10 


Cr, 


By  Shipment  to  Port  au  Prince 

"   Merchandise 

"  Merchandise 

"  Cash 

**  Balance 


127 


5 

$    230 

u 

.  200 

11 

125 

11 

500 

12 

5,000 

6,055 

00 
68 
37 
35 
10 
00 
07 
55 
52 
07 
67 
27 

25 


50 


00 
00 
00 
GO 

00 
00 


41 


■  M    1 


r 


V 


: 


f 


8 


1850. 

Feb. 

March 

April 


1800. 

May 


«« 


18&0. 

Feb. 


«< 


t* 


Dr. 


Store 


2 
2 

1 

30 


10 
30 


To  Cash 
"  Cash 
"  Cash 
"  Cash 


tl 
3      $ 


65  i    00 


5 

8 
11 


To  Sundries 13 


45 

462 


00 

00 


200      00 


772 


<< 


Cash... 


Dr. 


13 


April       21 


30 
30 


128 


14 


$     500 
75 


00 

00 
95 


trntmilimm 


Profit 


To  William  Blakeley 

"   Sundries 

"  Cash 

'*    Sundries 

"  Sundries 


'  $  100 

1    250 

120 

1,306 

8,546 

00 
00 
00 
03 

48 

10,322 

51 

Expenses. 


Cr. 


B 


1850. 

March 


tl 


April 


<i 


14 
30 


By  De  Nones'  Consignment. 
"  Company  1  Merchandise 
16  1      "  Fisher's  Consignment... 
30        "  Profit  and  Loss 


7 

8 

9 

12 


$     52 

39 

18 

662 


772 


24 
00 
00 
76 

00 


AND      Loss. 


Cr. 


1850.     I 

March     30      By  Company  1  Merchaadise 

"  Cash 

"  Cash 

"  Sundries 


April  27 
••  1  27 
••         30 


8   $  619  1  88 
10    1,700   00 


10 


530 
7,472 


00 
63 

51 


17 


189 


^H    HI' 

*  ^1    ^1  ' 

^H    ^Bl* 

^B    ^^^1 ' 

i* 


9 


1850. 


April 


«« 


1850. 


May 


Dr. 


April     !  30 


To  Profit  and  Loss 


Dr. 


18S0.       I 

March  i  26      To  Sundries. 


21 
30 
90 


"  Cash 
"  Cash 


"  Profit  and  Loss 


16      To  J.  Eaton  &  Co. 


130 


COMMISSIOK. 


12 


S    794 


85 


794 


S5 


Exchange. 


8 
10 

11 

12 


13 


$   '355  !  .56 


8 
78 


31 
76 


152  1  70 


595 


32 


t    20      10 


1850. 

Feb. 
March 


II 


April 


« 


M 


1850. 

Feb. 
April 


May 


20 
14 
30 
16 
28 
30 
30 
30 


25 
24 
30 


23 


131 


Cr. 


By  Walter  Howard 

"  De  Nones*  Consignment. 
"  Company  1  Merchandise 
"  Fisher's  Consignment... 

"  Merchandise 

"  Cash 

"  H.  B.  Walker  &  Co 

"  Joseph  Ruiz 


4 

7 

8 

9 

11 

11 

11 

11 


$    84 

215 

196 

117 

150 

12 

6 

12 


Cr. 


By  Schooner  Josephine 

"  Sundries 

"  Joseph  De  Nones  . 

By  Sundries 


5 

10 
11 


13 


$     177 

365 

51 


595 


105 


14 
71 
25 
00 
00 
50 
63 
62 


794      85 


78 
72 
82 


32 


00 


10 


Dr. 


Charles 


1850. 

Jan. 

5 

2 

4 

30 

« 

30 

To  Sundries 

1 
6 

6 
12 

$     140 

288 

175 

2 

00 
00 
00 
07 

March 

"  Merchandise 

April 

"  De  Nones*  Consignment 

"   Interest 

605 

07 

18A0. 

April 

To  Balance 

$    167 

07 

Dr. 


1.3*> 


Paul 


Lawrence. 


18S0. 

Feb. 
*i 

March 
April 


1850. 

May 


12 
27 

7 
30 


28 


Harris. 


1850. 

Jan. 
March 


6 

4,988 

67 

20 

87 

20 
00 
00 

7,319 

i  1,988 

555 

3,000 

(t 


•« 


18S0. 

April 
May 


21 
18 
21 
30 


Cr. 


10 


By  Merchandise 

"   Shipment  to  Port  au  Prince. 

"  De  Nones'  Consignment 

••  Balance , 

By  Cash 


1 

1 

3 

$  140 

5 

288 

6 

10 

12 

167 

605 


14  ll 


S     167 


•  I 


Cr. 


By  Bills  Receivable 2 

"  Cash 

"  Company  1  Merchandise 


7 
7 


«i 


Company  1  Merchandise 8 


30 
30 


By  Balance 
"  Interest. 


14 


. 


I3S 


00 

00 

00 

07 

07 
07 


11 


Dr. 


Oliver 


i! 


To  Merchandise 

"  Merchandise 

"  Merchandise 5 

•*  Fisher's  Consignment 8 


1  $2,000 

2  200 
500 
810 


To  Merchandise 


00 
00 
00 
00 


3,610      00 


14      $    562 


50 


Otis   &   Co. 


1850. 

Jan. 

March 

April 


Blay 


19 

5 

14 


By  Sundries 

"  Bills  Receivable 
"  Sundries 


30      By  Cash 


Cr. 


11 


2 
6 
9 


14 


$  2,000 
700 
810 


3,510 


00 
00 
00 

00 


t    350      00 


1S50. 

Jan. 


Dr. 


22      To  Bills  Payable. 


1860. 

May      I  23 

-       I  22 


To  Sundries. 


"  Merchandise 


134 


Henry 


2 

13 
14 

$  1,500 

1 6,806 
337 

00 

52 
60 


Austin. 


I860. 

Jan.      ^  14 


I860. 


May 


M  I 


16 
28 


By  Merchandise 


135 


Or. 


By  Merchandise 13      $    300      00 

"  Cash 14  150  i  OO 


1  ;. 


>^ 


Mih 


12 


1850. 

Jan. 

March 

April 


I860. 

April 
May 


Dr. 


James 


■^^^^^^ 2      $1,000 

"  Merchandise 4!       j  qoo 


-u_ 


■    ■■  -  '  ■ ' 


Dr. 


-..■■-.,,...  ,^ 


24 
9 
6 


To  Merchandise , 

"  Sundries 

"  Fisher's  Consignment. 


30 
17 


To  Balance 

"  Merchandise 


166 


2,000 


00 
00 

00 


S.  H. 


2 
6 

8 


$    250      00 

395      00 

1,350      00 


14 


1»995      00 


$    395      00 
500      00 


Truman. 


1850. 

Jan. 
Feb. 


1850. 

May 


22 

26 


By  Cash 

"  William  Evans. 


10  I  By  Merchandise 


LOVELL. 


By  Cash  ... 
"  Sundries. 

"  Balance  . 


By  Cash 


137 


Cr. 


12 


2 
5 


14 


1,000 
liOOO 


2,000 


Of 
00 


00 


$     212 


00 


Cr. 


14 


$     300 


00 


13 


i 


M 


i 


1850. 

Aoril 


Dr. 


1BB0> 

Jan.     •    26 
Feo.        IS 


To  Merchandise  . . . 
**  Bills  Receivable 


Dr. 


Feb         16      To  Bills  Payable. 


20 


**  Sundries. 


30      To  Balance 


138 


WiLLIA 


2 
3 


$    200      00 


500 


00 


700  1    00 


Walter 


4      $  4,444      44 
4         2,974      29 


7,418 


71 


$    307     62 


Blakelet. 


18S9. 

Feb.     I    9     By  Sundries . 
13       "  Sundries 


*« 


(«' 


Howard,  London. 


1850. 

Feb. 


April 


13  I  By  Merchandise 

25       *'  Schooner  Josephine 


*•  Balance 


:39 


Cr. 


13 


3 

4 


$    200 


00 


500      00 


700    i  00 


Cr. 


3      1 4,888      89 
5    I      2,222      22 


307 


7.418 


62    %- 


71 


I 


14 


Dr. 


1850. 

Feb. 

26 

March 

27 

I860. 

May 

12 

To  James  Truman 


It 


Company  1  Merchandise 


To  Cash 


Dr. 


1850. 

March 


16 


To  Shipment  to  New  Orleans 


Dr. 


140 


William 


5 

8 

14 

$  1,000 
260 

1,260 

$     200 

00 
00 

00 
00 


LoCKHART 


$  2,020 


00 


Joseph 


1850 

April 

10 
30 

To  Sundries ........................ 

9 
11 

$    62 
3,469 

00 

"  Sundries 

32 

3,531 

32 

E 

Ivans. 

Cr. 

14 

1850. 

Feb. 

20 
30 

Bv  Merchandise .............••••••■• 

4 
13 

$  1,260 

00 

1,260 

00 

1880. 

May 

By  Merchandise 

0 

$     420 

00 

&      ARROTT.       NewOrleanB. 


1850. 

April 


By  Merchandise 


D  E    Nones,     cadi*. 


141 


Cr. 


8 


$  2,020 


00 


Cr. 


1850. 

March 

14 

By  De  Nones*  Consignment 

7 

$3,531 

32 

3,531 

32 

15 

1850. 

April 


8 
11 
14 
16 


Dr. 

To  Fisher's  Consignment. 

"  Sundries 

"  Oliver  Otis  &  Co 

"  Sundries 


Dr. 


I<<a0. 

April 


30      To  Sundries. 


Dr. 


BSO. 


April    i  30      To  Sundries 


142 


Irvine 


9 

$  1,440 

9 

1,350 

9 

310 

10 

1,445 

4,545 

00 
00 
00 
00 

00 


H.  B.  Walker 


Joseph 


11      $  4,987 


50 


Fisher. 


&     C  O  M  p.,       Port  an  Prinee. 


April      28      By  Merchandise 


RVlZf      Pnerto  Principe. 


.  April 


By  Cash 


143 


Cr. 


15 


UM. 

April 

16 

By  Fisher's  Consicrmnent 

9 

$4,545 
4,545 

r 

00 

^^.-^^ 

00 

Cr 


11 


%  2,650 


00 


Cr. 


If, 


1 


i 


16 


Dr. 


1850. 

Feb. 
April 


To  Sundries. 


30 


4( 


Profit  and  Loss 


Dr. 


1850. 

Feb. 


<i 


April 


27 
28 
30 


To  Sundries 

"  Sundries , 

"  Profit  and  Loss 


Dr. 


1850. 

April 


13  I    To  Sundries 


1850. 

April 


30      To  Balance 


144 


Shipment    to 


3 
12 


$  1,822 
197 


2,020 


22 

78 

00 


Shipment    to 


5 

5 

12 


$  3,908 

201 

1,890 


6,000 


00 

56 
44 


00 


Shipment    to 


New   Orleans. 


Port  au  Prince. 


Boston. 


1850. 

April 


May 


18 


By  Balance 


By  J.  Eaton  &  Co. 


19 


145 


Cr. 


16 


1850. 

March 

16 

By  Lockhart  &  Arrott* ••• 

7 

$  2,020 

00 

2,020 

00 

Cr. 


1850. 

April 

28 

By  Merchandise 

11 

%  6,000 

00 

^^^^^^^^^ 

6.000 

00 

Cr 


13         4,600 


00 


i! 


>  I 


I   -i! 


lli 


17 


Dr. 


1850. 

March 


M 
M 


3 

7 

14 


Dr. 


1850. 

April 


16 


To  Sundries. 


146 


De    Nones' 


To  Cash  . . . 
"  Sundries. 
"  Sundries. 


Dollars 


Dollars 


6 
6 
7 


$     460 

55 

3,799 


4,314 


Fisher's 


i 


9 


00 
00 
27 


27 


$4,680   ;  00 


4,680   '  00 


Consignment. 


Cr. 


17 


1850. 

March 


fi 


«« 


<i 


«( 


3  I   By  Cash 

4  "  Sundries 

9  ,  "  S.  H.  Lovell. 

10  I      "  Cash 


10 


*'  Merchandise 


$     456 


00 


475 

150 

1,233 

2,000 

00 
00 
27 
00 

4,314 

27 

Consignment. 


Cr. 


1850. 

April 


I* 

M 
M 


6 

8 

13 

15 

16 


By  Sundries 

"  Irvine  Fisher 

"  Shipment  to  Boston 

"   Thomas  Blanchard  ..f. 
"  Cash ff 


8 
9 
9 
9 
0 


$  2,160 

1,440 

720 

43 

316 


4,680 


00 
00 
00 
20 
80 


00 


147 


ii 


m 


18 


Dr. 


1850. 

March 


^■'•- 


tt 


it 


185d. 

April 


1850. 

April 


20  '  To  Cash 

21  "  Paul  Harris 


30 


"  Sundries. 


Dr. 


20 


30 


To  Sundries. 


To  Balance 


Dr. 


148 


Company   1 


7 
7 

8 


$  2,000 
1,187 
4,662 


00 
50 

50 


7,850      00 


Company  2 


10 


1 3,333 


$  3,333 


33 


33 


Edward    G. 


«.,0.  I' 


Merchandise. 


1850. 

March 
« 

M 
M 


23 
26 
27 
28 


By  Sundries 
"  Sundries. 
"  Sundries. 
"  Sundries. 


Merchandise. 


1850. 

April 


By  Balance 


Fail   &   Co. 


1850. 

May 


13 


By  Merchandise 


149 


Cr. 


18 


7 
8 
8 
8 


3,000   !  00 

2,400      00 

500      00 

1,250      00 


7,850 


00 


Cr. 


1 
1 

12 

$  3,333 

■ 

33 


Cr. 


13 


$     375 


00 


19 


Dr. 


Balances    of 


1850. 

April 


u 


l< 


tt 


it 


tl 


M 


l« 


«f 


30 
30 
30 
30 
30 
30 
30 
30 
30 
30 


ToCash 

"  Merchandise 

"  Bills  Receivable 

"  Store-Fixtures |  12 

"  Schooner  Josephine i    12 


12 
12 
12 


"  Charles  Lawrence 

"  S.  H.  Lovell 

•«  Waller  Howard 

Shipment  to  Boston  .... 
Company  2  Merchandise 


« 


tt 


Dr. 


1850. 


May 


29      To  MerchandUe 


12 
12 
12 
12 
12 


$26,274 

07 

15,000 

00 

6,998 

35 

270 

00 

5,000 

00 

167 

07 

395 

00 

307 

62 

3,500 

00 

3,333 

33 

61,245 


44 


Barclay    & 


14 


$     175 


00 


l.'SO 


April    30,    1850. 


1800. 

April 


fi 


4* 


41 


30  ,  By  Bills  Payable 

30        "  Paul  Harris 

30        "  Thomas  Blanchard 
**  C.C.  Marsh 


30 


Livingston. 


18S0.   i 

May        22 


By  Merchandise 


Dollars 


1^1 


Cr. 


13 
13 

13 
13 


$  4,137 

4,988 

31,144 

20,975 


19 

11 

20 

20 
93 


01,245 


44 


Cr. 


13 


$    550 


00 


'Si 


\ 


III 


20 

1800. 

May 


Dr. 


16      To  Cash 


Dr 


May 


16 


To  Cash 


Dr. 


1850. 


May 


18      To  Shipment  to  Boston. 


152 


14 


C.   J. 


$     150 


00 


John 


14 


I 


(     100 


00 


Joseph 


13 


$  4,600 


00 


4,600  '  00 


Martin. 


Sims. 


1850. 


May 


1- 


By  Store-Expenses 


Eaton    &   Co,   Boston. 


1630.         ! 

May       ;  16 


i« 


By  Sundries 


18        *♦   Sundries 


80 


153 


Cr. 


20 


00        ^ 


Cr. 


!! 

13      $     200 


00 


Cr. 


21 


Dr. 


1850. 

May 


16 


To  J.  Eaton  &  Co. 


Dr. 


1850. 

May 


18 


To  Bills  Payable 


Dr. 


1850. 

May      i    23       To  Sundries 


I  At 


Erie    Rail 


13 


$  4,000 


00 


Insurance. 


13 


S    401      25 


Shipment    to 


13       $6,806 


52 


Road     Stock. 


1650. 

May 


23 


By  Sundries 


San    Francisco    (Joint). 


155 


Cr. 


21 


Cr. 


I     I! 

13  j  $    293 


04 


Cr. 


: '4*1*1 


CASH-BOOK. 


B.  &  M. 


1850. 


Note.— In  this  book  first  appear  all  the  sums  of  money  which  we  receive 
and  pay  ;  the  entries  are  made  immediately  on  receiving  or  paying  the  sums. 

This  book  gives  us  an  exact  idea  of  the  state  of  our  Cash  funds ;  showing 
from  what  source  we  have  received,  how  we  have  applied  them,  and  what 
amount  we  ought  to  have  on  hand.  From  this  book  entries  pass  into  the  day- 
book daily,  weekly,  or  monthly ;  if  weekly  or  monthly,  the  forms  of  the  entries 
are  shown  in  the  day-book  under  date  of  May  30th.  As  this  book  involves 
a  knowledge  of  journalizing,  the  following  rules  may  aid  the  student  in  ma- 
king entries  in  the  cash-book. 

Rule  1.  The  first  word  or  name  that  we  enter  on  the  Dr.  side,  when  we 
receive  any  sum,  should  be  the  name  of  ihe  creditor  (person  or  object)  that  we 
owe,  or  ought  to  credit,  for  the  sum  we  receive. 

Rule  2.  The  first  name  or  word  that  we  enter  on  the  Cr.  side,  when  we 
pay  any  sum,  should  be  the  name  of  the  debtor  that  owes  us,  or  that  we  ought 
to  debit,  for  the  sum  we  pay. 


.s..^ 


(i: 


i;^ 


♦ ; 


» 


I 


Dr. 


-  Cash. 


1820. 

Jan. 

5 

« 

5 

«i 

12 

(1 

19 

it 

20 

n 

22 

tt 


24 


T.°  n  n  *  ^^^"^^^^'^'  received  of  him  as  capital 

?V       ^^^^*''  received  of  him  as  capital 

"    Merchandise,         received  of  S.  H.  Lovell  for  bill 

of  this  date 

"   ^^ver  Otis  &  Co.,  received  of  them  on  account ! .  .* 
Merchandise,         received  for  sundry  sales  of  this 

date 

"   James  Truman,     received  of  him  for  loan  of  ITth 

inst 

"   Merchandise,         received  for  sundry  sales  of  this 

date 


lEJO. 

fan. 
Peb. 

u 

M 


30 
9 

23 

24 


Balance  on  hand 

To  William  Blakeley,  received  of  him  in  full  for  bal- 
ance of  account  of  $200 

"    Merchandise,         received  of  J.  Truman  on  bill  of 

Sl,620  of  this  date 

"   Bills  Receivable,  received  for  Strang,  Adriance,  & 

Co.'s  Note,  No.  11,  discounted. . 


26,000 
12,000 

125 
1.000 

250 

1,000 

160 


40,535 


33,205 
100 
120 

2,000 


OC 
00 

00 
00 

00 

00 

00 

00 

00 
00 
00 
00 


Cr. 


158 


18S0. 

Jan. 

7 

By  Store-Fixtures,     paid  W.  Wharton's  bill 

$  300 

00 

•< 

14 

**   Merchandise,        paid  Rogers  &  Brothers  for  bill 

16 

of  this  date  ................. 

800 

00 

« 

"    Merchandise,        paid  C.  Bernard  balance  of  bill 

of  S3.200  of  this  date 

2,000 

00 

u 

17 

"   James  Truman,    paid  him  as  a  loan 

1,000 

00 

(« 

28 

"   Bills  Receivable,  paid  J.  Truman  as  a  loan  on  his 

• 

Note,  No.  6,  at  12  months 

2,000 

00 

<« 

30 

**    Bills  Payable,       paid  our  Note,  No.  2,  in  favor 

of  T.  P.  Cone  &  Son 

1,230 

00 

tt 

30 

Balance  on  hand 

33,205 

GO 

40,535 

00 

1850. 

— ^ 

Feb. 

2 

By  Store-Expenses,  paid   sundry  expenses,  as  per 

pettv  Cash-Book 

$     G5 

00 

«< 

2 

"    Bills  Payable,       paid  balance  of  our  Note,  No.  1, 

for  $1,080,  favor  H.  Ausi  in 

525 

32 

«< 

4 

"    Shipment  to  New  Orleans,  paid   insurance   and 

shipping   expenses   on   Invoice 
consigned  to  Lockhart  &  Arrott, 

per  Brig  Franklin 

100 

00 

<i 

12 

"   Merchandise,        paid  Haven  &  Smith  balance  of 

bill  of  $1,240,  of  this  date 

100 

00 

«< 

13 

"   Merchandise,        paid  freight  and  charges  on  In- 

voice received  from  W.  Howard, 

London,  per  "  Washington"  . . . 

422 

00 

t* 

20 

"   Walter  Howard,  paid  shipping  expenses  on  In- 

voice per  "Atlantic,"  to  his  order 

75 

00 

(i 

20 

"   Walter  Howard,  paid   Insurance   on   $2,805,  at 

3^0,  Invoice  per  "Atlantic"  . . 

85 

15 

« 

24 

"   Discount,              paid  on  Note  No.  11,  discounted 

31 

00 

tt 

25 

"    Schr.  Josephine,  paid  Capt.  C.  Davis  balance  of 

bill  of  $5,000,  her  cost 

2,600 

00 

M 

26 

"    SchF  Josephine,  paid  Wm.  Smith's  bill  for  sun- 

dry articles  for  her 

155 

00 

« 

28 

"   Shipment  to  Port  au  Prince,  paid  expenses  on  In- 
voice consigned  to  H.  B.  Walker 

&  Co.,j)cr  "Josephine" 

120 

00 

u 

28 

"    Schr.  Josephine,  paid  Atlantic  Insurance  Comp. 

-J-  °  0  premium  on  $5,000 

26 

00 

tt 

28 

Balance  on  hand 

« 

31,120 

53 

35,425 

00 

159 

I  ( 


♦( 


Dr. 


Cash. 


1850. 

Feb. 

28 

Mar. 

3 

M 

4 

it 

5 

tt 

9 

tt 

10 

12 

u 

12 

u 

16 

tt 

18 

tt 

23 

tt 

28 

M 

27 

1850. 


Mar.  1 30 
Apr.     7 


« 

It 

u 

M 
tt 


8 

14 
16 

18 


24 


Balance  on  hand 

To  De  Nones*  Consignment,  received  for  sundry  sales 

of  this  date 

"  De  Nones'  Consignment,  received  of  Thomas  Mil- 
ton for  bill  of  this  date 

"    Bills  Receivable,  received  for  Oliver  Otis  &  Co.'s 

acceptance  No.  2 

"    S.  H.  Lovell,         received  of  him  for  balance  of 

account  of  January 

"  De  Nones'  Consignment,  received  of  L.  M.  Hoff- 
man &  Co.  proceeds  of  sale  at 
auction 

"    Bills  Receivable,  received  for  P.  Harns's  Note 

No.  5 

"    Merchandise,         received  of  P.  Harris  for  bill  of 

this  date 

"  Bills  Receivable,  received  for  S.  H.  Lovell's  ac- 
ceptance, No.  8 

"   Paul  Harris,         received  of  him  for  purchases 

in  joint  account 

"    Comp.  1  Merchandise,  received  of  E.  K.  Collins 

balance  of  bill  of  $3,000,  of  this 
date 

"   Comp.  1  Merchandise,  received  of  Haven  &  Smith 

balance  of  bill  of  $1,250 

"    Comp.  1  Merchandise,  received  of  O.  Otis  &  Co. 

balance  of  bill  of  $1,200 


31,120 

456 

300 

2,670 

250 


53 

00 
00 
00 
00 


To  Interest, 


« 

It 

<( 
<< 


Balance  on  hand 

received  on  C.  Bernard's  Note, 
No.  15,  renewal  of  No.  1 

Fisher's  Consignment,  received  of  H.  Burrell  & 

Co.  for  bill  of  this  date 

Oliver  Otis  &  Co.,  received  of  them  on  account . . . 

Fisher's  Consignment,  received  of  P.  Harris  for 

bill  of  this  date 

Merchandise,         received   of  T.   Owen   &  Son 

on  bill  of  $1,837.50,  of  this 
date 

Bills  Receivable,  received  balance  of  Brown  Bros. 

&  Co.'s  Bill  of  Exch.,  No.  13, 
for  dCl.OOO,  sold 


40,481    77 


Forward , 


34,325   *34 


160 


«! 


1660. 

Mar, 


It 


i< 


« 


tt 


tt 


tt 
tt 


1S6». 

Apr, 


«• 


tt 


*t 

M 

M 
M 


20 


20 


25 
26 


8 
10 

11 
13 


Cr. 


By  Store-Expenses,   paid  sundry  expenses,  as  per 

petty  Cash-Book 

"  De  Nones*  Consignment,  paid  for  Freight  and  Du- 
ties on  Invoice  received  from  J. 
De  Nones,  Cadiz,  per  Brig  Clio 

"   De  Nones*  Consignment,  paid  for  damages  in  sales 

of  3d  and  4th  inst 

"   Bills  Payable,       paid  our  acceptance,  No.  8,  in 

favor  of  Lewis  Clapier 

**   Comp.  1  Merchandise,  paid  Bunker  &  Starr  for  I 

our  i  bill  in  joint  account  with  ? 
P.  Harris 

"   Paul  Harris,         paid  Bunker  &  Starr  for  his  J 

bill  of  Flour  in  joint  account 
with  us 

"   C.  C.  Marsh,         paid  him  on  account 

"  Bills  Receivable,  paid  Brown  Brothers  &  Co.  bal- 
ance of  their  Bill  of  Exchange 
of  cei,000=$4,800 

Balance  on  hand • 


$     45 


460 


By  Store-Expenses,   paid   sundry  expenses    as  per 

petty  Cash-Book 

"   Store-Expenses,   paid  Geo.  Loder  three  months 

rent  of  Store 

"  Merchandise,  paid  Freight  and  charges  on  In- 
voice received  from  Lockhart  & 
Arrott,  N.  Orleans 

"   Irvine  Fisher,       paid  him  on  account 

**  Joseph  De  Nones,  paid  for  damages  in  sales  on  his 

account  

**  Irvine  Fisher,       paid  him  on  account 

"   Shipment  to  Boston,  paid  expenses   on  Invoice 

consigned  to  J.  Eaton  &  Co., 
•  per  Brig  Pilot 


45 


4,444 


2,000 


2,000 
300 

2,400 

28,787 


00 


00 


00 


44 


00 


40,481    77 


Forward . 


00 


3,666    33 


21 


161 


Apr. 


r< 


«< 


i< 


M 


27 

27 
27 
29 
30 

30 


I 

Apr.  ^0 


Dr. 


Cash. 


Brought 

To  Merchandise,         received  of  J.  Percival  for  trans- 
fer to  him  of  purchase  at  auc- 


tion 


"   Profit  and  Loss,   received  for  proceeds  of  lottery 

tickets 

"   Profit  and  Loss,   received  in  an  anonymous  letter 

addressed  to  us * 

"   Schr.  Josephine,  received  for  Freight,  proceeds 

of  last  voyage 

"  Joseph  Ruiz,  received  for  his  draft  on  P.  Har- 
mony's Nephews,  at  sight,  for 
$5,000 

"  Commission,  received  on  draft  of  $5,000,  col- 
lected for  account  of  J.  Ruiz . . . 


Balance  on  hand 


34,325    34 


175 
0 


141 

1,700 

530    pO 

500    DO 


r 


4,987 
12 


50 
50 


2,197    09 


:J6,274 


)7 


Cr. 


Apr. 


M 


« 


41 


•« 


M 


M 


M 


«l 


15 
18 
21 
21 
24 

28 

30 

30 


30 


30 


80 


Brought 

By  Thos.  Blanchard,  paid  him  on  account 

"   Irvine  Fisher,       paid  him  balance  of  account  . . . 

"   Profit  and  Loss,   paid  for  12  lottery  tickets 

"   Exchange,  paid  on  $475  uncurrent  money. 

**  Interest,  paid  on  our  Note  No.  13,  re- 
newal of  No.  9 

"  Merchandise,  paid  expenses  on  Invoice  re- 
ceived from  H.  B.  Walker  &  Co. 

"   Store-Expenses,   paid  expenses  this  month,  as  per 

petty  Cash-Book 

"   H.  B.  Walker  &  Co.,  paid  A.  Belmont  for  Bill  of 

Exchange,  No.  18,  for  14,062.72 
francs  remitted  to  them 

"  Joseph  De  Nones,  paid  B.  Blanco  for  Bill  of  Ex- 
change, No.  19,  on  Francia  &  Co., 
for  $3,454.80,  remitted  to  him. . 

"  Joseph  Ruiz,  paid  M.  Taylor  for  Bill  of  Ex- 
change, No.  20,  on  Drake  Bros. 
&  Co.,  for  $5,050,  remitted  to 
him 

"  Exchange,  paid  premium  on  10,500  Span- 
ish dollars,  at  |^  ^'Iq 

Balance  on  hand 


$3,666 

500 

245 

120 

8 

8 

75 

200 

2,643 

3,402 


4,974 

78 
26,274 

42,197 


33 

00 
00 
00 
31 

40 

00 

00 

37 

98 


88 

75 

07 

09 


lOS 


i 


i93 


J 


INVOICE-BOOK. 


B.  &  M. 


1850. 


Note. — In  this  book  are  copied  all  bills  of  goods  bought  and  all  invoices  of 
goods  received  into  our  possession.  From  this  book  the  entries  pass  into  the 
day-book,  either  daily,  weekly,  or  monthly.  If  weekly  or  monthly  the  word- 
ing or  form  of  the  day-book  entries  is  shown  under  date  of  May,  in  the  day- 
book. 


A 


E. 


K 


New  York,   January   5,   1850. 


Inventory  of  Merchandise  advanced  by  C.  C.  Marsh,  as 
Capital : — 

20  doz.  Snyder's  Shovels at  $7.50  $150  00 

20    «•     Spades 7.50  150  00 

50  boxes  Derby  Scythe-Stones 3.25  162  50 

40  doz.  Grass  Scythes 12.00  480  00 

20    "     Corn         "      13.00  260  00 

60    "     Porter's  Patent  Balances  . .      10.00  600  00 

200  common  Curry-Combs 62 J  125  00 

25  gross  Britannia  Tablespoons 5.00  125  00 

1^      "            "         Teaspoons 2.00  20  00 

20  6  ft.  Mill  Saws 4.75  95  oo 

20  6|.  ft.  Cross-Cut  Saws 3.00  60  00 

30  Razor  Strops 2.OO  60  00 

100  pr.  Waffle  Irons 62i  62  50 

50  doz.  Patent  Coffee-Mills 5.00  250  00 

2000  qr.-in.  Steel  Augers 06  120  00 

20  doz.  Collins'  Axes 20.00  400  00 

1 J  reams  Hardware  Paper 5  oO 

New  York,  January  1,  1850. 

Signed  C.  C.  Marsh. 


New  York,  January  14,  1850. 

Messrs.  Blanchard  &  Marsh 

Bought  of  Henry  Austin, 

1  crate  common  Curry-Combs — 

100  doz at  $  .62 

1  crate  patent  Curry-Combs,  100  doz.  .87 
20  doz.  Goodyear's  patent  Pitchforks.  5  50 
10 

5 
15 

6 

6 
40 


t 


« 


(I 


i< 


Manure       "         .  9.50 

Long  Shovels 7,50 

Madeira  Straw-Knives 14.00 

real  Steyre  Scythes 10.00 

common  German  Scythes  ....  5.00 

Jack-Saws 2.75 

20  boxes  Iron  Mills g  oO 

1  cask,  50  pieces,  Waffle  Irons 7.50 

1     '*     Cutlery 

Note  at  30  days. 


$62  50 

87 

50 

110 

00 

95 

00 

37 

50 

210 

00 

60 

00 

30 

00 

110 

00 

120 

00 

37 

50 

540 

00 

166 


S3,125 


00 


1,500 


•T3 


£. 


00 


New  York,   January    16,  1850. 


New  York,  January  15,  1850 

Messrs.  Blanchard  &  Marsh 

•Bought  of  Rogers  &  Brothers, 

10  boxes  Cotton  Cards,  4  doz.  each ...  at  $5.50  $220 

5  "      Wool       "        4         "       ...        4.00       80 
20      «*      best  Ink 2.00       40 

6  cwt.  American  Blister  Steel 6.50       39 

250  lbs.  German  Steel '.  .15       37 

100    "  •♦  "      14       14 

3  Mousehole  Anvils,  wt.  600  lbs 12^  75 

3  Birmingham     "        "    500   " 07  35 

20  gross  Gilt  Vest  Buttons 75  15 

40     "      Gilt  Coat       "       1.50  60 

10     "      Steel  Coat    "       4.50  45 

10    "      Steel  Vest    "       2.00  20 

3    "      Braces  and  Bitts 10.00  30 

2  doz.  Knives  and  Forks 11.25  22 

6    "     Rogers*  Penknives 5.00  30 

1  "     Knob  Locks 10.00  *  10 

2  "     32-inch  Grass  Scythes 13.50  27 

Received  Payment, 

Rogers  &  Brothers, 
Cash.  pr.  John  Sims. 


00 
00 
00 
00 
50 
00 
00 
00 
00 
00 
00 
00 
00 
50 
00 
00 
00 


itr 


$    800 


)0 


^ 


3 


New  York,   February   13,   1850. 


No.l. 
No.  2. 

No.  4. 

No.§. 


Invoice  of  Merchandise  shipped  per  steamer  Washing- 
ton, Capt.  Floyd,  consigned  to  Blanchard  &  Marsh, 
New  York,  pursuant  to  their  order  and  for  their  ac- 
count, viz.  :— 

5  Cases. 


12  ps.  210  yds.  Super  Blue  Cloth,  at  20s...de210  00  00 


11 
9 

75 
24 
20 


<( 


(I 


325 
275 


"  2500 
244 
300 


II 


K 


II 


11 


II 


II 


487  10  00 


Black  Cloth 30s. 

Brown   and   Drab 

Cassimeres 10s...     137  10  00 

Ginghams Is.. .    125  00  00 

6-4  Muslin Is.  2d.    14  04  08 

4-4  Muslin Is. . .      15  00  00 


E. 


Charges. 


989  04  08 


Packing  Cases ^6  3  15  02 

Duty  and  entry 12  15  06 

Cartage  and  litterage 19  12  06j 

Insurance  and  policy 22  04  06 

Commission.., 52  07  07J   110  15  04 


E.E. 

London,  December  31, 1849. 


<£1100  00  00 


(Signed)                 Walter  Howard. 
Equal  to,  at  the  rate  of  4s.  6d.  per  $1 


16a 


14,888    89 


SALES-BOOK. 


B.  &  M. 


1850. 


Note.  —  In  this  hook  first  appears  a  full  description  of  all  goods  sold  or 
passed  from  our  hands,  or  out  of  our  possession.  From  this  book  the  amounts 
go  to  the  day-book,  either  daily,  weekly,  or  monthly :  if  weekly  or  monthly, 
the  form  of  the  entry  in  the  day-book  is  shown  under  date  of  May  in  that  book. 

At  the  time  the  purchaser  selects  his  goods,  we  make  an  entry  in  this  book, 
showing  the  quantity,  quality,  and  price  of  the  same ;  and  from  this  entry  we 
make  the  bill  which  we  give  the  purchaser. 


22 


/ 


New   York,   January    8,   1850. 


New  York,   February   4,   1850. 


E. 


CO 

c 

c 

!z; 

c 
C 


O 

> 

•  >-• 

o 
u 
c 

1 


Sold  to  Paul  Harris,  at  60  days — 

250  doz.  common  Curry-Combs at  S  .68  $170  00 

10  gro.  Allison's  Britannia  Teaspoons       2.12J     21  25 

30  doz.  Duff  Razor  Strops 2.12J     63  75 

1000  qr.-in.  Can's  Steel  Augers 07       70  00 

10  

Sold  to  William  Blakeley,  at  30  days — 

1000  qr.-in.  Augers at  $  .07  $70  00 

100  doz.  Curry-Combs 87 J  87  50 

20    "     Pitchforks 5.50  110  00 

10    "     Manure  Forks 9.50  95  00 

5    "     Long  Shovels 7.50  37  50 

20    "     Wool  Cards 4.00  80  09 

10  gross  Gilt  Vest  Buttons 78  7  80 

487  80 
2J  per  cent,  advance 12  20 

11  

Sold  to  S.  H.  Lovell —  Cash. 

3  Patent  Balances at  $10.00     $30  00 

6  doz.  Coffee-Mills 5.00       30  00 

2  doz.  Collins'  Axes 20.00       40  00 

3  "     Britannia  Tablespoons 5.00       15  00 

5    "  "         Teaspoons 2.00       10  00 


$    325 


00 


500 


00 


125 


OC 


N.O. 


B&M 


E. 


Invoice  of  Hardware  shipped  per  Brig  Franklin,  Kay, 
consigned  to  Lockhart  &  Arrott,  New  Orleans,  to  be 
sold  on  our  account,  viz. : — 

15  Boxes. 

20  doz.  Shovels at  $7.50  $150  00 

20    "     Spades 7.50     150  00 

50  boxes  Scythe-Stones 3.25     162  50 

40  doz.  Grass  Scythes 12.00     480  00 

20    "     Cora         "        6.30     126  00 

30  patent  Balances 10.00     300  00 

20  Mill  Saws 4.75       95  00 

20  Cross-Cut  Saws 3.00       60  00 

20  doz.  Pitchforks 5.50     110  00 

10     "     Coffee-Mills 5.00       50  00 

55  pr.  Waffle-irons .62 J     34  47 

1  ream  Hardware  Paper 4  25 

1,722  22 

________^____________  Charges. 

Cartage  and  labor $20  33 

Packing  Boxes 25  63 

Insurance   on   $1,768,   at   3  per  cent., 

and  policy 54  04  $100  00 


New  York,  February  4,  1850. 


$1,822 


22 


17U 


171 


COMMISSION  SALES-BOOK. 


B.  &  M. 


1850. 


Note.  —  This  book  contains  a  minute  description  of  the  merchandise  sold 
for  account  of  others.    The  entries  in  it  are  drawn  from  the  sales-book. 

From  this  book  we  make  the  account-sales  that  we  may  have  to  render  to 
those  persons  for  whom  we  have  sold  goods. 


1 


1850. 

Mar. 


u 


tt 


«l 


Dr. 


Sales  of  Fruit  for  Account 


14 
14 
14 


To  Cash,  paid  Duty  and  permit 

paid  Freight  and  primage 

paid  Cartage  and  labor 

"   C.  Lawrence,  paid  him  for  damages 

"  Cash,  paid  sundries  for  damages 

*'  Store-Expenses,  Storage,  and  Advertising 

"   Commission  on  $4,314.27,  at  5  o|q 

"  Joseph  De  Nones,  for  amount  of  net  proceeds 

due  May  •25,  1850 


•  The  Account-sales  which  we  render  to  Mr.  De  Nones,  made 
out  from  the  above,  and  the  calculation  for  averaging  this  account, 
to  ascertain  when  the  net  proceeds  are  due,  will  be  found  among 
the  Forms  and  Calculations  at  the  end  of  the  book. 


174 


$    340 

108 
12 
10 
45 
52 

215 


00 
00 
00 
00 
00 
24 
71 


3,531  32 


4,314 


27 


OF  Joseph  De   Nones,   cadix. 


Cr. 


1850. 

Mar. 


u 


<• 


«< 


M 


M 


4 
9 

10 


10 


By  Cash,  100  boxes  Lemons at  $3  00 

52  boxes  Oranges 3  00 

"  C.Lawrence,    25  boxes  Oranges,  60  ds.  3  00 

200  jars  Olives 50 

"   Cash,                 100  boxes  Oranges 3  00 

"  S.  H.  Lovell,     25  boxes  Lemons,  90  ds.  3  00 

25  boxes  Oranges 3  00 

"  Cash,  at  Auction — 

150  boxes  Lemons at  $5.00  $750  00 

110  boxes  Oranges 3.80     418  00 

220  jars  Olives 50     110  00 


],278  00 
Auctioneer's  Commission  3^^\q 44  73 


By  Merchandise,  4,000  jars  Olives,  4  mos.  . .  at  .50 


$    300 

156 

75 

100 

300 

75 

75 


OC 
00 
00 
00 
00 
00 
00 


1,233 
2,000 


27 
OC 


4,314'  27 


!75 


1850. 

Mar. 

M 

<f 

M 
tl 

it 


Dr. 


Sales  of  Merchandise  in  Joint 


20 

21 

30 

30 
30 


To  Cash,  paid  for  800  barrels  Flour,  at  $5 

=$4,000.     Our  one  half 

"  Paul  Harris,    received  of  him  500  bbls.  Flour, 

at  $4.75  =  $2,375.  Our  one  half 
•'  Storage,  on  1,300  barrels,  at  3  cts.  per 

month 

"   Commission,    on  $7,850,  at  2 J  °|o 

"  Paul  Harris,    his  half  of  net    proceeds,   due 

due  May  5,  1850» |    3,807 


30      "  Profit  and  Loss,  our  half  net  gain 


Note. — The  Accoant-sales  made  out  from  the  above,  for  render- 
ing to  Mr.  Harris,  is  among  the  Forms,  at  the  end  of  the  book. 

*  The  calculation  for  averaging  this  aocoaut,  to  ascertain  when  i 
the  net  proceeds  are  dac,  will  be  found  among  the  Calculations, 
at  the  end  of  the  hool:. 


i/1 


Account   with   Paul   Harris 


Cr. 


1850. 

Mar. 

23 

«( 

26 

«i 

27 

M 

28 

By  Cash,  500  bbls.  Flour at  $6  00 

"  Bills  Receivable,  400  bbls.  Flour  60  ds.        6  00 

"Sundries,  JiOO  bbls.  Flour 6  00 

"  Merchandise,       200  bbls.  Flour  3  mos.       6  25 


$3,000 
2,400 
1,200 
1,250 


00 
00 
00 
00 


7,850    00 


177 


BILL-BOOK. 


B.  &  M. 


1850. 


Note. — In  this  book  ali  notes,  drafts,  acceptances,  and  bills  of  exchange  in 
our  favor  or  against  us,  are  first  entered.  This  book  supplies  us  with  the 
dates,  the  names,  the  time  or  credit,  the  time  when  due,  and  amounts  of  all 
paper-claims  against  us  or  in  our  favor,  without  referring  to  the  documents 
themselves. 


Bills 


II 


II 


3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 


DRAWN  AT 


1  N.York 

1 

2  1  Boston 
N.York 

do. 


Receivable. 


DATES. 


23 
24 


do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 


do. 
do. 


<< 


ti 


Jan.  4, 1850 
Dec.31,1849 
Jan.  10,1850 
19,    " 
8,    " 
"   28,    " 
JFeb.  4,    " 
"    13,    " 
21,    " 

23,  " 

24,  " 
Mar.  5,    " 

"   26,    " 

"   27,    " 

Apr.  7, 


DRAWN  BY 


II 


II 


II 


II 


u 


Jan.  17,  " 
Apr.  30,  " 

"   30,    " 

"   30, 


II 


21  Boston 

22  N.York  j 


May  16,  " 
"  15,  " 
"  20,  " 
"    27,    " 


Christopher  Bernard . 

T.  Perkins  &  Co 

William  Blakeley 

Oliver  Otis  &  Co 

Paul  Harris 

James  Truman 

Christopher  Bernard . 
William  Blakeley.... 
Christopher  Bernard . 

James  Truman 

Strang,  Adriance,  ic  Co 

Oliver  Otis  &  Co 

Brown  Brothers  &  Co. 

Oliver  Otis  &  Co 

Christopher  Bernard . 


ON  WHOM. 


Oliver  Otis  &  Co. 


S.  H.  Lovell. 


Brown,  Shipley,  &  Co. 


11,    "     i  S.  H.  Lovell 


Irvine  Fisher 

A.  Belmont . . 

B.  Blanco 

Moses  Taylor 


. 


Francia  &  Co 

Drake  Brothers  &  Co. 


J.  Eaton  &  Co. . 

A.  G.  Beck 

W.  F.  Mott,  Jr. 
A.  Aranguran . . 


Eagle  &  Hazard 


jmi 


WHOSE    FAVOR, 


Thomas  Blanchard  . 

C.  C.  Marsh 

Blanchard  &  Marsh. 

do. 

do. 

Paul  Harris 

Blanchard  &  Marsh . 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 
T,  Owen  &  Son. . . . 
H.  B.  Walker  &  Co. 
Blanchard  &  Marsh 
Joseph  Ruiz 


Blanchard  &  Marsh . 
do. 
do. 
do. 


TIME. 


90  days. 

60  days. 

30  days. 

30  days. 

60  days. 

12  mos. 
6  mos. 

30  days. 

60  days 

60  days. 

90  days. 

60  days. 

20ds.s't 

60  days. 
I  60  days. 
i    4  mos. 


DUE. 


April  7, 1850 
Mar.  4,    " 
Feb.  12,    " 
Feb.  21,    « 
Mar.  12,    " 
Jan.  31,1851 
Aug.  7,1850 
Mar.  18,    " 
Apl.  25, 
Apl.  27, 
May  28, 
May    7, 


II 


II 


II 


II 


I 


3  mos. 


eOds.s't 
15ds.8't 
30ds.s*t 


May  29, 1850 
June  9,  " 
Aug.  14,  '• 
Apl.  20,  " 
Fr. 


60  days.  July  18, 1850 

4  mos.  Aug.  18,  ". 

3  mos.  Aug.  23,  " 

6  mos.  Nov.  30,  " 


181 


AMOUNT. 


$2000 

2670 

500 
1000 

325 
2121 

320 

251 

800 

500 
2000 

707 
4444 

500 

2000 

1350 

1200 

14062  73 

$3454  80 


00 
00 
00 
00 
00 
00 
00 
37 
00 
00 
00 
35 
44 
00 
00 
00 
00 


REMARKS. 


ReVedbyNo.l5. 

Paid  Mar.  5,1 850. 

Charged  to  Wm. 
Blakeley  Feb.  12, '50. 
Passed  to  Haven 
&  Smith,  Feb.  12, '50. 
Paid  Mar.  12, '60. 


Paid  Mar.  16, '50. 

r 
I 

Pass'dWUmerd'g 

&Mount  ApL20,'50. 

Pass'dWilmerd'g 

&  Mount  Apl.  20,  '50. 

Discountttl  Febr. 

24,  1850 

Paid  May  7, 1850. 

Sold  Apl.  24, '50. 

Paid  May  29, '50. 


5050 


63 


554    90 


352 
415 


00 
00 


611  ioo 


;         • 

Remitted  to  H.  B. 
Walker<feCo,AT«l..'W 
Remitted  to  J.  de 
Nones,  ApL  30, 1850. 
Remil'dtoJ.Ruiz 
April  30, 1850. 


Bills 


III 


1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

U 

12 

13 

H 
14 
16 
17 
18 
19 
20 


DRAWN  AT 


Boston 
N.York 

do. 

do. 

do. 

do. 

do. 
London 
N.York 

do. 

do. 

do. 

do. 


N.York 
do. 
do. 
do. 
do. 
do. 
do. 


DATES. 


Dec.  27,  '49 

Oct.  29,  " 

Jan.  16,  '50 

"     14,    " 

Feb.  13,    " 

"     13,    " 

"     13,    " 

"     16,    " 

"     21,    " 

"     27,    " 

"     28,    " 

Apr.  20,   " 

24, 


<i 


« 


May   4,  '50 


« 

6, 

« 

n 

15, 

M 

it 

20, 

<( 

u 

25, 

« 

tl 

26, 

«« 

u 

28. 

(( 

DRAWN  BY 


ON  WHOM. 


J.  Eaton  &  Co 

C.  C.  Marsh 

Blanchard  &  Marsh 

do. 

do. 

do. 

do. 

Walter  Howard 

Blanchard  &  Marsh . 

do. 

do. 

do. 

do. 


Thomas  Blanchard  . . , 


Blanchard  &  Marsh . . . 


Blanchard  &  Marsh 
do. 
do. 
do. 
do. 
do. 
do. 


}Sii 


rAYABLE. 

WHOSE    FAVOR. 

TIME. 

DUE. 

AMOUNT. 

REMARKS. 

Henry  Austin 

60  days. 

Feb.  28, 1850 

$1080 

00 

Paid  Feb.  2, 1850 

T.  P.  Cope  &  Son 

90  days. 

Jan.  30, 

it 

1230 

00 

Paid  Jan.  30,  '50. 

Rogers  &  Brothers . . . 

90  days. 

Apl.  19, 

it 

2100 

00 

Paid  Mar.  23, '50 

Henry  Austin 

30  days. 

Feb.  16, 

If 

1500 

00 

Paid  Feb.  17, '60. 

United  States 

8  mos. 

Oct.  16, 

« 

407 

40 

« 

do. 

10  mos. 

Dec.  16, 

it 

407 

41 

do. 

12  mos. 

Feb.  16, 

it 

407 

41 

Lewis  Clapier 

20ds.s't 

Mar.  11, 

it 

4444 

44 

Paid  Mar.  9,1 850 

Christopher  Bernard . . 

60  days. 

Apl.  25, 

tl 

800 

1 

00 

Re*wedbyNo.l3 

J.  R.  Dallett&Co.... 

60  days. 

May    1, 

it 

i  2190 

00 

Paid  Apr.  24, '50 

Phoenix  Insurance  Co. 

90  days 

June  1, 

tt 

81 

56 

Wilmerding  &  Mount 

4  mos.    j  Aug.  23, 

"     J 

2033    00 

Christopher  Bernard. . 

60  days. 
20  days. 

June  26, 

1 
it 

800 

00 
00 

T.Owen  &  Son 

May  27, 

1 

;      300 

Paid  May  27, '60 

do. 

20  days 

May  29, 

tt 

200 

00 

Paid  May  29,  *50 

Paul  Harris 

3  mriR 

Aug.  18, 
Dec.  23, 

ti 

2019 

01 
25 

Atlantic  Mutual  Ins.  Co. 

7  mos. 

tl 

401 

Tnijillo  &  Barreiras. . 

4  mos. 

Sept.  28, 

it 

320 

GO 

Harmony's  Nephews. . 

6  mos. 

Nov.  29, 

it 

630 

00 

Spoffi)rd»TiIeston,  &  Co. 

3  mos. 

• 

Aug.  31, 

tt 

270 

00 

1 

las 


Ml 


MERCANTILE 


FORMS  AND  CALCULATIONS, 


VIZ.: 


Receipts. 

Orders. 

Promissory  Notes. 

Endorsed  Notes. 

Drafts. 

Bills  of  Exchange. 

Accounts-Sales. 

Accounts-Current. 

Letters. 


Discount  and  Interest. 
Commission. 
Insurance. 
Exchanges — 

French, 

English,  &c. 
Equation  of  Payments. 
Averaging  Balances. 
Profits  and  Losses. 


24 


Il 


I 


186 


BIERCANTILE  FORMS. 


RECElFr  FOR  PAYMENT  OF  A  BILL. 

From  trausaction  of  Jan.  7.) 

New  York,  January  7,  1850. 
Received  of  Messrs.  Blanchard  &  Marsh,  three  hundred  dollars,  in 
full  for  bill  of  store-fixtures,  of  this  date. 

Geo.  W.  Wharton. 


RECEIPT  FOR  A  NOTE. 

^Frum  trotisactiun  ot  Im-  22.) 

$1,500  o|ioo  New  York,  January  22,  1850. 

Received  of  Messrs.  Blanchard  &  Marsh,  their  note  at  thirty  days, 
dated  14th  inst.,  for  one  thousand  five  hundred  dollars. 

Henry  Austin. 


PROMISSORY  NOTE— ON  uimahij. 

(From  truotfactiua  of  Jmi.  .\j 

tl40  ®|ioo  New  York,  January  4,  1850. 

On  demand,  I  promise  to  pay  to  the  order  of  C.  C.  Marsh,  one 
hundred  and  forty  dollars :  value  received. 

Charles  Lawrence 


PRO.MISSORY  NOTE. 

Frutn  traiiiiActiun  of  Jan.  10.) 

$500  o|ioo  New  York,  January  10,  1850. 

Thirty  days  afler  date,  I  promise  to  pay  to  the  order  of  Blanchard 
&  Marsh,  five  hundred  dollars :  value  received. 

William  Blakelet. 

Doe  Feb.  12;  ISSa 


ENDORSED  NOTE— with  imtkbest. 

(From  tramactioti  of  Jan.  ail) 

•2,121  00.  New  York,  January  28,  1850. 

Twelve  months  afler  date,  I  promise  to  pay  to  the  order  of  Paul 
Harris,  two  thousand  one  hundred  and  twenty-one  dollars:  value  re 
ceived. 

Due  Jan.  31, 1851.  JaMES  TrumAN. 

NoTK.— Ai  P.  Harm  it  the  endoner  b  this  note,  hii  name  iboold  be  on  the  back  of  it  He 
may  endorge  BpeciaDy  or  aimply— specially  by  writing  «  Pay  to  the  order  of  Blanchaid  & 
M anh ;"  limply,  by  merely  writing  his  name. 


MERCANTILE  FORMS. 
PROMISSORY  NOTE. 


187 


(From  transaction  of  Jan.  iS.; 

$1,500  o|ioo  New  York,  January  14,  1850. 

Thirty  days  after  date,  we  promise  to  pay  to  the  order  of  Henry 
Austin,  one  thousand  and  five  hundred  dollars :  value  received. 

Blanchard  &  Marsh. 

Dae  Feb.  16, 1850. 


[No.!.]  BILL  OP  EXCHANGE. 

(From  transartion  of  FpI>.  25.1 

Exch.  for  dCSOO  stg.  New  York,  February  £t>,  1850. 

Sixty  days  after  sight  of  this  our  first  of  exchange  (second,  third, 
and  fourth,  of  same  tenor  and  date,  unpaid),  pay  to  the  order  of  Capt. 
Caleb  Davis  five  hundred  pounds  sterling,  value  received,  and  charge 

the  same  to  our  account.  _,  «   ,, 

Blanchard  &  Marsh. 

To  Walter  Howard,  London. 


Note  — The  above  is  one  of  the  set.    A  bill  of  exchange  consists  of  four  drafts,  in  order  to 
expedite  the  forwarding  and  collecting ;  one  being  paid,  the  others  become  null 


DRAFT. 


(From  transaction  of  Jan.  5.) 

$1,080  00.  ^^'^  Boston,  December  25,  1849. 

Sixty  days  after  sight,  ^iy  to  the  order  of  Henry  Austin,  one  thou- 
sand and  eighty  dollars,  ve^iie  Received,  and  charge  the  same  to  our 
account  ^  ^1  T.  Perkins  &  Co. 

To  Thos.  Blanchard,  Ne^  ?ork. 


DRAFT  AT  SIGHT. 


$310  01 


(From  tranFftction  of  Apl.  14.) 


iioo  ?  New  York,  April  14,  1850. 

At  sight,  without  grace,  pay  to  the  order  of  Blanchard  &  Marsh, 
three  hundred  dollars,  value  ^ceived,  and  charge  the  same  to  our  ac- 
count. 3  Oliver  Otis  &  Co. 
To  Irvine  Fisher,  Esq.,  Nwv  York. 


AN  ORDER. 

(From  transaction  of  March  2.) 

^288  o|ioo  New  York,  March  2,  1850. 

Messrs.  Blanchard  &  Marsh  will  please  deliver  to  the  order  of 
W.  Blakeley  such  goods  as  he  may  choose,  to  the  amount  of  two  hun- 
dred and  eighty-eight  dollars,  and  charge  the  same  to 

Charles  Lawrence. 


188 


MERCANTILE  FORMa 


! 


AccouKT-SaLES  of  Invoice  of  Fruit  received  per  Brig  " Clio,"  sold 
by  order  and  for  account  of  Joseph  De  Nones,  Cadiz. 


Mar. 


«< 

M 

<« 
«l 
M 


M 


3 
3 

4 
4 

4 

9 
9 


100  boxes  Lemons,       at  $3.00,  cash 6300  00 

52  boxes  Oranges,  3.00      "    156  00 


5  I 


"  10 
"  !  10 
'•   '  10 


25  boxes  Oranges, 
200  jars     Olives, 

100  boxes  Oranges, 
25  boxes  Lemons, 
25  boxes  Oranges, 

150  boxes  Lemons, 
110  boxes  Oranges, 
220  jars     Olives, 


3.00,  60  days 75  00 

.50  60     "    100  00 


3.00,  cash 

3.00,  90  days 75  00 

3.00  90     "    75  00 


5.00,  cash 750  00 

3.80      "    418  00 

.60      "    110  00 


10 


Sold  at  auction 1,278  00 

Auctioneer's  commission  3J  <*|q 44  73 


4000  jars  Olives at  .50,  4  mos. 


Charges. 


Duties  and  permit $340  00 

Freight  and  primage io8  00 

Cartage  and  labor X2  00 

Refunded  for  damages 55  oo 

Storage  and  advertising 52  24 

Commission  on  $4,314.27,  at  5  o|o  .....]..  215  71 

Net  proceeds,  due  May  25,  '50 


E.E. 

New  York,  March  14, 1850. 

Blanchard  &  Marsh, 
Per  John  Sims. 


Note.— The  lalei  in  thii  account  being  made  on  different  ternu 
and  at  different  time«,  a  calculation  is  neceaaary  in  order  to  aacertain 
when  the  net  proceeds  will  be  due:  the  account  must  be  averaged. 
The  calculation  will  be  found  among  those  under  the  head  of  Eotu^ 
tion  of  Paymentit,  at  the  end  of  the  book— example  5. 


II 


$    456 
175 

300 
150 


1,233 


00 

00 
00 
00 


27 


2,000 1  00 


4,314 


782 


27 


3,531 


95 
32 


MERCANTILE  FORMS. 


189 


Account-Sales   of  1,300  barrels  Flour,  sold  by  Blanchard  &  Marsh. 

in  joint  account  w^ith  Paul  Harris. 


1850. 

Mar. 


*( 


M 


23 

26 


500  barrels  Flour, 
400 


ii 


"      27  i  200       " 


28 


200 


u 


« 


«t 


M 


at  $6.00,    cash 

6.00,     60  days 

6.00,    60     "     ..$500  00 
Cash 700  00 


3  months . 


Charges. 


Of  which  your  half  is  (due  May  3,  '50) 


E.E. 

New  York,  March  30, 1850. 


Blanchard  &  Marsh, 
Per  John  Sims. 


Note.— The  calculation  required  to  average  this  Account-sales, 
ID  ascertain  at  what  date  the  net  proceeds  will  fall  due,  will  be  found 
amon^  the  ••  Calculations,"  at  the  end  of  the  book— example  4. 


$3,000 

2,400 


00 

00 


1,200  I  00 
1,250    00 


7,850 


Storage  on  1,300  bbls.  1  mo.,  at  3  cts $  39  00 

Commission  on  $7,850,  at  2J  o|o 196  25  235 

Net  proceeds,  due  May  3,  *50 7,614 


00 


25 
75 


3,807    ?n 


H 


IM 


190 


18M. 

Jan. 


March 


4« 


1800. 


Dr. 


MERCANTILE  FORMS. 

Charles  Lawrence  in  Account 


5 

2 


.. 


April        \0 


To  Balance  due  C.  C.  Marsh 

To  your  draft  at  sight,  in  favor  of  William 

Blakeley 

To  Merchandise,  per  bill  rendered 


To  Balance 


t    140 

288 
175 


603 


$    165 


00 

00 
00 

OC 
00 


NoTJt.— The  above  ib  an  Accoant-cuirent  of  the  most  aimple 
class,  being  without  interest.  It  is  made  oat  from  the  Leger, 
referring  by  the  dates  to  the  entries  in  the  Day  Book,  for  aoch 
explanations  of  the  loma  aa  may  be  thought  neceaaary. 


MERCANTILE  FORMS. 
Current  with  Blanchard  &  Marsh. 


191 


Cr. 


1850. 

Feb. 


<i 


March 

April 


By  our  draft  at  sight,  in  favor  of  Haven  &  Smith 

By  Merchandise,  per  bill  rendered 

By  allowance  on  bill  of  4th  inst 

By  Balance 


E.E. 

New  York,  Apl.  30,  1850. 


$    140    00 

288  '  00 


10 
105 


00 

GO 


603    00 


r 


198 


Dr. 


MERCANTiLg  FORMS. 
Charles  Lawrence  in  Account 


DATES. 


I860. 
JtQ. 

Mar. 


Apl. 


5 
2 

4 

30 


IIM. 

ApL 


To  Balance  due  C.  C.  Marsh 

To  Merchandise,  per  your  draft  at 

sight,  in  favor  of  W.  Blakeley  . . 

To  Merchandise,  per  bill  rendered. . 

To  Balance  of  Interest,  at  6  <>|q 


30    To  Balance 


115 

69 
67 


INTST. 


$2 


NoTi.— The  purchMes  and  sales  of  merchtn. 
dke  in  the  above  accoont-current  are  supposed 
to  be  without  credit  or  time ;  consequently  we 
count  the  days  from  the  dates  of  the  pnrchasea 
and  sales  up  to  the  day  on  which  we  make  tfie 
account  (April  30).  Great  care  must  be  taken 
not  to  calculate  interest  where  it  is  not  owed. 
If  a  sum  is  not  due  on  the  date  of  the  entiy,  the 
explanation  should  show  when  it  is  due. 

Error  in  the  above  intrest  of  24  ctat 


68' 


83 


1    42 


6 


*  % 


93 


4t:.--SJt- 


AMOUNTS. 


$    140 

288 
175 


605 


00 

00 
00 
07 


—  I 

07 


$    167    07        ^ 


MERCANTILE  FORMS. 


Current  with  Blanchard  &  Marsh. 


19S 


Cr. 


DATES. 


1850. 


(n     i 


INT  ST. 


Feb.!  12  i  By  our  draft  at  sight,  in  favor  of  Ha- 

i  ven  &  Smith I  77 

■;  .  .  I 

27  j  By  Merchandise,  per  bill i  62 


«i 


Mar.     7    By  allowance  on  bill  of  4th  inst. 
Apl.    30  I  By  Balance  of  Interest 


Apl. 


30 


By  Balance  due  this  date, 


E.E. 


Nbw  York,  Apl.  30, 1850. 


t ' 


54 


96 


« 


U. 


93 


AMOUNTS. 


80        $ 

97 
09 
07 


140  00 
288  1 00 
10    00 


167 


07 


605    07 


I 


t    L 


IM 


De. 


MERCANTILE  FORMS. 


Christ*-  C.  Marsh  in  Account 


DATES. 


IBM). 

Jan. 


Mar. 
Apl. 


5     To  your  Note  in  favor  of  T.  P.  Cope 

&  Son,  due  Jan.  30, 1850 

25  I  To  C ash 

30  \  To  Balance  of  Interest 

30     To  lialauco 


E.  E. 


New  York,  Apl.  30, 1850. 


m 


90 
36 


Note. — An  Account-cmrent  is  a  itatement 
which  we  often  have  occasion  to  render  to  per- 
sons with  whom  we  have  been  doing  basinets. 
It  is  intended  to  explain  to  the  person  to  wlwm 
it  is  rendered,  liow  his  accoant  stands  in  oar 
books,  and  to  show  what  balance  is  doe  him  or  as. 


INT  ST. 


18 
1 

297 


317 


45 
80 
69 


94 


AMOUNTS. 


$1,230 

300 
16,702 


18,232 


00 
00 

69 


MERCANTILE  FORMS. 


CUEBENT  WITH  BlANCHARD  &  MaRSH. 


195 


Cr. 


69 


DATES. 

1850. 

Jan. 

5 

c< 

5 

M 

5 

it 

5 

Apl. 


1850. 

Apl. 


30 


30 


By  Cash 

By  Oliver  Otis  &  Co.'s  acceptance, 
due  March  4, 1850 

By  Merchandise 

By  Charles  Lawrence's  balance  of 
account 

By  Balance  of  Interest  at  6  ®|o 


By  Balance 


There  are  three  way«  of  making  oat  these  ac> 
coonts,  which  are  used  according  to  circamstan- 
ces:— 

1st  A  simple  statement  of  the  account,  icHhoul 

interest. 
2d.  A  statement  of  the  account,  with  interest 

calculated  on  each  sum. 
3d.  A  statement  of  the  account,  showing  by  ar- 

erage  when  the  balance  was  or  will  be  doe. 

The  above  account  belongs  to  the  second  class. 
It  is  made  out  for  one  of  the  partners,  in  order  to 
ascertain  the  amount  of  interest  on  his  capital, 
under  the  supposition  that  the  partners  were  to 
be  allowed  interest  on  their  resi)ective  capitals. 

The  balance  of  interesl  in  this  account  (S297.69) 
is  carried  to  the  Day-Book  (Apl.  30),  journalized, 
and  posted  to  the  accounts  in  the  Leger.  The 
account  of  the  other  partner,  when  made  out,  will 
show  a  balance  of  interest  of  S493.66 


115 

57 
115 

115 


INT  ST. 


230 
59 


317 


00! 

37 
89 

68 
94 


AMOUNTS. 


$12000 

2,670 
3,125 

140 
297 


18,232 


00 

00 
00 

00 
69 


16,702 


69 


69 


lU 


Dr. 


MERCANTILE  FORMS. 


Paul  Harris  in  Account 


DATES. 


Jim.      8  To  Merchandise,  at  60  days,  per  bill 

I  rendered,  due  March  12,  '50 ... . 

Mar.  20  To  Cash,  paid  your  J  bill  of  Flour  in 

!  joint  account 

Apl.  j  30    To  Balance  of  Interest  in  red 

"    i  30    To  Balance  of  Interest 


Apl. 


30 


To  Balance  due  this  date 


E.E. 


New  York,  Apl.  30,  1850. 


m 


49 


41 


NoTK. — Tbe  al)ov»'  balance  of  interest  ($6.67^ 
M  carried  into  the  D«y-Hook,  hut  journalized  and 
poited  wrong  iu  order  to  artord  an  example  of 
correcting  a  class  of  errors  thai  require  Day- 
Book  and  Journal  entries  to  correct  them.  The 
correction  in  this  case  is  made  by  the  last  entry 
■nder  date  of  May. 


.ilEu'iki:. 


INT  ST. 


$2 

13 
1 
6 


24 


65 

67 
90 
67 


89 


AMOUNTS. 


S   325 


2,000 


5,001 


00 


00 


*^ 


MERCANTILE  FORMS. 


197 


Current  with  Blanchard   &  Marsh. 


Cr. 


54 


7  326  I  54 


Apl. 


1S50. 

Apl. 


30 


30 


30 


By  your  Note,  at  60  days  from  8th, 

due  March  12, 1850 

By  Cash 

By  our  -J  bill  of  Flour  in  joint  ac- 
count with  you 

By  your  ^  net  proceeds  of  sales  in 
joint  account,  due  May  3,  *50  — 

By  Balance  of  Interest,  at  6  ®|o 


By  Balance 


NuTK. — The  at)ove  account  shows  a  suui  ju 
tbe  credit  ($3,807.37)  which  is  not  due  until 
May  3d,  being  3  days  after  the  date  on  which 
we  make  the  account — April  30;  the  interest 
on  which,  therefore,  must  belong  to  the  debtor 
side.  When  such  is  the  case,  we  must  calculate 
the  interest  from  now  until  the  time  the  sum  is 
dte,  and  write  the  days  and  interest  in  red  ink; 
and  before  adding  the  interest  colamns,  we  must 
make  an  entry,  on  the  debtor  side,  of  the  red-ink 
interesfT 


1 

-24 

1 

90  i 
89 

$5,001     54 


k 


198 


MERCANTILE  FORMS. 


Dr. 


Paul  Harris  in   Account 


1850. 

Jan. 

March 
April 


8 
20 
30 


To  Merchandise,  at  60  days,  per  bill  rendered. . 
To  Cash,  paid  for  your  }  bill  in  joint  account . . 
T«»  Balance  due  April  22.  IS.-iO 


$    325 

2,000 
4.994 


E.  E. 


New  York,  April  30,  1850. 


00 
00 

87 


7,319 


^ 


MERCANTILE  FORMS. 
Current   with  Blanchard   &  Marsh. 


199 


Cr. 


1850. 

Jan. 

March 
f( 


•81 


NoTit.— The  above  ia  an  Accouni  current  averaged.  The  one 
on  the  two  preceding  pavea  is  the  same  accoont  made  ap  with 
interest. 


1850. 

April 


<« 


J- 

h 


30 
30 


By  your  Note,  due  March  12, 1850 

By  Cash 

By  our  \  bill  in  joint  account  with  you 

By  your  \  net  proceeds  of  sales  in  joint  account 
due  May  3,  1850 


$  325  00 
2,000  00 
1,187  1 50 


By  Balance  due  April  22,  1850 

By  Interest  from  April  22  to  date — 8  days 


Note.— The  above  account,  and  the  precedbg,  are  accounts, 
current  made  out  for  the  same  person,  with  a  view  to  exemplify 
two  of  the  common  methods  of  drawing  off  an  account-current, 
VIZ. :  one  with  interest  calculated  on  each  euro,  and  the  other  by 
averaging  to  find  tchen  its  balance  is  due.  The  one  averaged 
shows  a  balance  due  April  22 ;  now  calculate  and  allow  hiterest 
on  this  balance  from  April  22  to  the  30th  (the  date  to  which  the 
other  account  is  made  up),  and  the  balances  of  the  two  accounts 
win  agree— both  showing  a,sum,dtte  Mr.  Harris,  at  30th  April, 
of  $5,001.54. 

The  calculation  of  averaging  this  account  will  be  found  under 
the  head  of  Equation  r>/  Paymenl$~ex&mp\e  6. 


I 


J 


LETTERS. 


Note.  —  It  is  necessary  to  preserve  copies  of  all  our  business  letters ;  for  this 
purpose  a  letter-book  is  kept. 

Subjects  of  the  following  letters :  — 

No.  1.  —  Circular  on  commencing  business. 

"    2.  —  On  ordering  Goods. 

"    3.  —  On  consigning  Goods. 

"    4.  —  On  rendering  Account-Sales. 

"    5.  —  On  drawing  a  Draft. 

"    6. — On  rendering  Account-Current,  and  requesting  remittance. 


MERCANTILE  FORMS. 


201 


[CIRCULAR.] 


No.  1. 


New  York,  January  5,  1850. 
Sir:— 

We,  the  subscribers,  respectfully  announce  to  you  that  we  have 
formed  a  copartnership  under  the  firm  of  Blanchard  &  Marsh,  for 
the  prosecution  of  a  general  commission  and  wholesale  business ;  and 
we  take  the  liberty  of  assuring  you  that  all  business  intrusted  to  our 
care,  shall  receive  from  us,  personally,  prompt  and  faithful  attention. 
Having  friends  and  correspondents  at  numerous  commercial  points,  we 
possess  facilities  not  often  enjoyed  by  new  establishments.  We  ar^ 
prepared  to  make  liberal  advances  on  consignments. 

Very  respectfully, 

Your  obfedient  servants, 
,  Blanchard  &  Marsa 

Thomas  Blanchard  will  sign — 
Christr.  C.  Marsh   will  sign — 

References:—- 

Messrs.  Moses  Taylor  &  Co New  York. 

Thomas  Owen  &  Son ..."         « 

Trujillo  &  Barreiras "  «« 

Peiiasco  Brothers Havana. 

Brown,  Shipley,  &  Co..  .Liverpool. 
Hargos  Brothers Vera  Cruz. 


26 


202 


MERCANTILE  FORMS. 


Na2. 


Mr.  Walter  Howard, 

London. 


New  York,  January  5,  1850. 


Dear  Sir  :  Please  accept  our  order  for  forwarding  to  us  per 
first  vessel,  the  annexed  list  of  dry  goods  of  various  patterns  and  of 
good  quality ;  for  the  amount  of  which  you  may  draw  at  thirty  or  sixty 
days*  sight. 

We  contemplate  consigning  to  you,  about  the  1st  of  February,  an 
invoice  of  rice  and  pearl  ashes,  relative  to  which  we  solicit  advice. 

Having  commenced  a  general  commission  business  (per  our  circular), 
we  beg  leave  to  solicit  your  favors,  and  pledge  our  honors  as  merchants' 
for  the  strict  observance  of  your  commands,  and  faithful  performance 
of  our  duty. 

Very  respectfully, 
I 

Your  obedient  servants. 


Blanchard  &  Marsh. 


MERCANTILE  FORMS. 


203 


No.  3. 


Messrs.  Lockhart  &  Arrott, 

New  Orleans. 


New  York,  February  4, 1850. 


Gentn.  :  Enclosed  we  remit  to  you  bill  of  lading  and  invoice 
of  hardware,  amounting  to  $1,822.22,  which  we  consign  to  you  per 
Brig  Franklin,  to  be  sold  for  our  account.  You  will  do  us  the  favor  to 
use  all  possible  despatch  in  making  sales  and  rendering  account. 

We  wish  you  to  make  returns  for  the  above  in  sea-islands  Cotton; 
you  will  therefore,  without  further  advice,  invest  the  net  proceeds  as 
soon  as  realized  in  that  article,  selected  with  your  accustomed  intelli- 
gence,  and  at  the  lowest  market  price. 

Keep  us  well  informed  of  the  state  of  your  market ;  we  expect  much 
business  in  that  direction,  and  from  rtie  high  esteem  in  which  we  hold 
your  house,  shall  olace  as  much  as  possible  under  your  care,  expecting 
no  less  from  you 

Very  respectfully. 

Your  obedient  servants, 

Blanchard  &  Marsh. 


204 


MERCANTILE  FORMS. 


Na4. 


Mr.  Joseph  De  Nones, 

Cadiz. 


New  York,  March  14,  1850. 


Dear  Sir  :  Enclosed  you  will  find  accoiint-sales  of  your  Con- 
signment of  Fruit,  per  Brig  Clio :  Net  proceeds  due  May  25,  1850, 
$3,531.32.  When  your  Fruit  arrived,  prices  were  very  low,  as  appears 
by  the  first  sales ;  but  a  sudden  demand  arose,  and  we  think  we  studied 
your  interest  by  disposing  of  the  remainder  at  auction. 

We   await  your  further  orders,  grateful   for  those   received,  and 
remain 

Very  respectfully. 

Your  obedient  senrants. 


Blanchard  &  Marsh. 


MERCANTILE  FORMS. 


205 


Na5. 


New  York,  February  25,  1850. 


Mr.  Walter  Howard,  ' 

London. 


Dear  Sir  :  We  have,  under  this  date,  drawn  a  bill  on  you,  at 
twenty  days*  sight,  in  favor  of  Capt.  Caleb  Davis,  for  five  hundred 
pounds  sterling  (dC500  stg.),  which  you  will  please  accept,  and  oblige 

Your  obedient  servants, 

Blanchard  &  Marsh. 


No.  6. 


New  York,  April  30,  1850. 


Mr.  Charles  Lawrence, 

Philadelphia. 


Dear  Sir  :  Annexed  we  present  your  account-current,  with  in- 
terest calculated  to  this  date,  showing  a  balance  in  our  favor  of  $167.07; 
for  which  amount,  if  you  find  correct,  please  remit  us  a  sight  draft. 

Very  respectfully. 

Your  obedient  servants, 

Blanchard  &  Marsh. 


206 


MERCANTILE  CALCULATIONS. 


DISCOUNT  AND  INTEREST. 

Interest  is  a  certain  sum  charged  for  the  use  of  money ;  it  is  alwavs 
calculated  by  the  100.  Six  per  cent.  (6  o|o)  signifies  $6  for  the  use  of 
«100  tor  one  year  (or  one  month,  if  so  agreed).  Seven  per  cent.  (7  ^L) 
mf^ans  $7  for  the  use  of  $100  during  one  year,  or  7  cents  for  the  use 
of  100  cents  for  a  year.  Therefore,  by  multiplying  any  sum  by  the  rate 
l»er  cent.,  and  dividmg  the  product  by  100,  we  obtain  the  interest  on  that 
sum  tor  one  year.     And,  having  the  interest  for  one  year,  we  may  take 

Y  ^^^ 6  months. 

3"  ^0^ 4  months. 

i  for 3  months. 

i  for 2  months. 

A  fo'' I  month. 

Example  1. 

What  is  the  interest  on  $2,000  for  one  year  and  three  days  (the  grace) 
at  6  °L  per  annum  ?  ^      ^   \,  ^  , 

'"  ^  (From  transaction  of  Jan.  2a) 

Note.— To  find  the  interest  on  any  number  of  dollars  for  a  year  is 
the  same  simple  calculation  as  to  find  the  amount  of  any  number  of 
things  at  6  or  7  cents  each  :  2,000  books,  at  C  cents  each,  would  amount 
to  $120 ;  so  the  interest  on  2,000  dollars  for  one  year,  at  6  cents  each 
would  amount  to  $120. 

Rule  (for  years).  Multiply  the  sum  by  the  rate  per  cent,  (here  it  is  6), 
and  divide  by  100 ;  the  quotient  will  be  the  interest  in  dollars,  if  the 
original  sum  be  dollars,  but  if  the  original  sum  be  dollars  and  cents,  the 
quotient  will  be  the  interest  in  cents. 

f  $2,000 

$120,00  Interest  for  one  year,  one  hun 
dred  and  twenty  dollars. 

Rule  (for  days).  Multiply  the  sum  by  the  number  of  days,  and  divide 
the  product  by  6 ;  the  quotient  will  be  the  interest  in  mills,  or  in  hun- 
dredths of  mills  if  the  sum  be  dollars  and  cents. 

$2,000 
3 

Divisor  6)6,000 

$1>00>Q  Interest  for  3  days,  1  dollar. 

Cut  off  one  figure  for  mills,  and  two  for  cents ;  the  rest  will  be  dollars 
The  interest,  then,  on  $2,000  for  3  days  is  $1.00,  and  for  one  year  and 
3  days  $121.00.  ^ 


i 


MERCANTILE  CALCULATIONS.  207 

EXAMPLK    2. 

What  is  the  interest  on  $1,080  for  26  days,  at  6  "|o  per  annum  ? 

(From  transaction  of  Feb.  2.) 

$1,080 
26 

6480 
2160 

Divisor  6)28080 

4,68,0  Interest  for  26  days,  $4.68. 

Example  3. 

What  is  the  interest  on  $250  for  33  days,  at  6  ^L  per  annum  1 

(From  transaction  of  Feb.  13.) 
$250 

33 

750 
750 

Divisor  6)8250 

1,37,5  Interest  for  33  days,  $1.37  J^. 

Example  4. 
What  is  the  interest  on  $3,469.32  for  25  days,  at  6  «|o  per  annum  ? 

(From  4th  transaction  of  ApL  30.) 

$3,469.32 
25 

1734660 
693864 

Divisor  6)8673300 

14,45,5,50  Interest  in  hundredths  of  mills— 
•       equal  to  $14.45. 

Although  the  rate  of  interest  may  vary  from  6  ^1^,  this  method  can 
still  be  used.  First  find  the  interest  at  6  per  cent.,  as  in  the  preceding 
examples,  and  then — 

Add i  of  itself for  7  per  cent. 

Add ^         "       "   8  per  cent. 

Add 1  "       «    9  per  cent. 

Add 1-         "       "  10  per  cent. 

Subtract  I         •'       "    5  per  cent. 

Subtract  |         "       «   4  per  cent. 

Thus—  Divide  by  6)$14.45  Interest  at  6  o|o— (Example  4.) 

2.41         "       at  1  o|o 

16.86         "        at  7  «|o 

Note. — This  luelliod,  ut'  multiplying  by  the  days  and  dividing  by  6, 
although  generally  used,  is  not  exactly  correct ;  it  gives  -^  part  more 
than  the  exact  interest,  because  the  rule  supposes  a  year  to  be  360  days. 


208 


MERCANTILE  CALCULATIONS. 


The  error  is  corrected  by  deducting  ^  (about  U  cents  on  each  dollar 
of  interest)  of  the  interest  so  found,  from  itself     Thus,  in  Example  2— 


The  interest  is 
Which  divide  by  73 


$4.68  I 
6 

4.62  exact  interest. 


Note  2.— The  divisor  "6000,"  or  "6,"  is  used  in  calculating  interest 
for  days  at  6  per  cent.,  on  account  of  the  facility  il  gives  in  dividing  by 
so  simple  a  number ;  but  it  does  not  follow  that  7  is  the  divisor  for  in- 
terest at  7  per  cent.,  nor  5  for  5  per  cent. 

The  divisor  6000  is  found  thus :  When  we  compute  interest  for  one 
year  at  6  per  cent.,  vire  always  multiply  by  6  and  divide  by  100 ;  there- 
fore, dividing  by  360  times  100  (36000)  will  give  the  interest  for  one 
day ;  and  in  order  to  save  multiplying  by  6,  we  divide  by  J  of  36000, 
which  is  6000— multiplying  by  6,  and  dividing  by  36000,  produces  the 
same  result  as  dividing  by  6000.  If  wo  divide  any  sum  by  6000,  we 
obtain  the  interest  on  it  for  one  day  at  the  rate  of  6  per  cent,  per  annum, 
and  that  interest  multiplied  by  any  number  of  days,  will  be  the  interest 
for  that  number  of  days ;  but  to  avoid  a  loss  in  fractions,  we  multiply 
first  and  divide  after. 


COMMISSION. 


Commission  is  a  sum  charged  by  a  person  for  doing  business  for 
another — for  buying  or  selling  goods,  collecting  or  paying  money, 
&c.,  &c. 

Commission  is  always  calculated  by  the  100,  and  has  no  reference 
whatever  to  time.  5  per  cent,  signifies  $5  for  every  100,  or  5  cents  on 
every  100  cents,  or  5  cents  for  every  dollar.  The  calculation  is  the 
same  that  is  required  to  find  the  amount  of  any  number  of  articles  at 


2J  or  5  cents  each. 


Example  1. 


What  is  the  commission  on  $2,805,  at  2  J  per  cent.  ?     (Or,  what  will 

2,805  books  amount  to,  at  2  J  CtS.  each  ?)  (prom  tranB.ction  of  Feb.  20.) 

Rule.  Multiply  the  sum  by  the  rate  per  cent.,  and  divide  the  product 
by  100 — that  is,  if  the  sum  be  dollars,  cut  off  two  right-hand  figures;  if 
the  sum  be  dollars  and  cents,  cut  off  four. 

$2805 


5610 
1402J 


$70.12^  Commission  on  $2,805,  at  2J 


MERCANTILE  CALCULATIONS. 

Example  2. 
What  is  the  commission  on  $4,314.27,  at  5  per  cent.  ? 

$4314.27 
5 


209 


(From  transaction  of  March  14.) 


215,73,35  Commission,  $215.73. 


INSURANCE. 

f  J'^T'^r^  '*  ^  r "™  "^^^T/  ^'''"  ^a^tying  the  safety  of  property 
fron.  the  dangers  of  sea  or  of  fire.  In  case  the  property  insured  is  lost, 
the  msurers  pay  the  value  that  it  was  insured  for,  to  the  holder  of  the 

A  policy  of  insurance  is  a  certificate  or  agreement  which  one  receives 
trom  an  insurance  company,  when  he  gets  property  insured. 

Insurance  is  calculated  by  the  100,  in  the  same  manner  as  commission. 

Example  1, 

3  ^cent%^^^  insurance  on  (or  the  premium  for  insuring)  $2,805,  at 

$2,805 
3 


(From  tftuisaction  of  Fdb.  90.) 


^^•1^  Premium  of  insurance,  $84.15 
Charge  for  the  policy,         1.00 

85.15 


It  is  customary,  in  insuring  shipments,  to  insure  for  10  per  cent,  more 
than  the  cost  of  the  goods  at  the  place  where  they  are  shipped 

fi.  i  T  ^'^i^'^  ''^^  ^''^''^'^*  ^''^  g^^^^  ^y  insurance  companies  to 

those  who  have  frequently  to  get  shipments  insured.  An  open  policy  is 
a  policy  larger  than  the  common,  on  which  entries  of  property  insured 
are  made  from  day  to  day  A  note  is  given  to  the  insuraSace  company 
tor  a  supposed  amount  of  premiums,  and  when  the  note  becomes  due, 
the  amount  of  premiums  is  ascertained  and  deducted  from  the  amount 
paid  tor  the  note,  and  the  balance  returned  to  the  holder  of  the  policy 


EXCHANGE. 

Exchange  treats  of  the  values  of  different  moneys,  and  of  chanring 
sums  of  one  kmd  of  money  to  another  kind  without  altering  their  values. 

m  some  cases,  foreign  money  should  be  calculated  at  its  par  or  in- 
trinsic value ;  m  others,  at  a  premium,  or  at  a  discount. 

I  he  importer  of  an  invoice  of  goods  changes  the  amount  of  the  in- 


210  MERCANTILE  CALCULATIONS. 

voice  into  his  money  at  the  par  value,  and  credits  the  person  from  whom 
he  received  the  goods  for  the  same.  But  if  he  buys  a  draft,  or  bill  of 
exchange,  by  which  to  make  a  remittance,  he  may  then  pay  more  or 
less  than  the  par  value  of  the  sum  for  which  the  bill  is  drawn  :  this  more 
or  less  is  the  premium  or  discount,  which  varies  according  to  the  trade 
between  the  two  places.  This  premium  or  discount  is  called  the  rate 
of  exchange, 

TABLE. 

Nominal  ralue.    Intrituic  Talue. 

oCl  stg.  (20  8.  or  40  sixpences) equals  $4.44,4 $4.84+ 

1  shilling «  .22,2 24+ 

6  pence "  .11,1 12 

4  8.  6  d.  (or  9  sixpences) "        1.00,0 1.09 

Example  1. 
What  is  the  par  value,  in  dollars  and  cents,  of  oGl.lOO  st^.  % 

(From  traiuacUon  of  Feb.  13.) 

Rule.  Multiply  the  pounds  by  40,  to  reduce  them  to  sixpences,  annex 
two  ciphers,  and  divide  by  9 — the  number  of  sixpences  in  a  dollar;  the 
result  will  be  dollars  and  cents. 

^1100 
40 

•  9)44000.00 

$4,888.89 —  value  of  .£1,100  stg.,  at  the 
nominal  par  value. 

Note. — The  present  true  or  intrinsic  value  of  .£1  stg.  is  nearly  $4.84 ; 
but  the  old  or  former  par  value  ($4.44)  is  generally  used  in  accounts. 
The  $4.44  was  the  par  value  of  a  pound  sterling  previous  to  the  adul- 
teration of  the  gold  coin  of  the  United  States  (1834),  and  that  nominal 
value  continues  in  use,  the  difference  being  made  up  under  the  name 
of  exchange  or  premium.  When  exchange  on  England  is  said  to  be  at 
8  or  9  per  cent,  premium  in  New  York,  it  is  in  reality  only  about  par — 
the  premium  being  calculated  on  the  $4.44,  the  former  value,  instead 
of  the  present. 

Example  2. 

What  is  the  value  of  <£20..  10..6,  in  dollars  and  cents,  at  part 

Rule.  Reduce  the  sum  to  sixpences,  add  two  ciphers,  and  divide 
by  9.     Thus— 

de20 ..  10  ..  6 
40 

800 — sixpences  in  dC20. 

20—        "         in  10  8. 

1—        "         in    6  a. 

9)821.00 

$91.22 


211 


MERCANTILE  CALCULATIONS. 

Example  3. 
What  is  the  amount  of  a  bill  of  exchange  drawn  for  dC500  stg.,  at 

%%  premium  1  ^^^^  transaction  of  Feb.  25.) 

Rule.  Calculate  the  value  at  par,  as  in  example  1,  and  then  add  the 
premium. 

.£500 

40 

9)20000.00 

$2222.22  Value  at  par.  .$2222.22 
177.78  Premium.  8 


$2400.00  Ans, 


ni.n.iQ 


Example  4. 


I  wish  to  invest  exactly  $3,650,  funds  in  my  hands  belonging  to  a  cor- 
respondent, in  a  draft  on  New  Orleans ;  for  what  amount  should  the 
draft  be  drawn,  supposing  the  exchange  at  3  per  cent,  discount,  to  cost 
that  sum  1 

Rule.  Multiply  the  sum  to  be  invested  by  100,  and  divide  by  the 
number  of  cents  you  allow  for  $1. 

$3650 
100 

97)  365000  ($3762.88  Amount  of  the  draft. 
112.88  Discount,  3  »|o  off. 

3,650.00  Cost  of  the  draft. 


Example  5. 

The  party  that  sold  the  above  draft  on  New  Orleans  for  $3,762.88,  at 
3  per  cent,  discount,  made  merely  this  calculation : — 

$3762.88 

3  per  cent,  discount. 


Dis.  on  the  draft  $112.88. 


112,88,64  discount. 


Example  6. 

I  wish  to  invest  exactly  $5,000  in  a  bill  of  exchange  on  Liverpool  ; 
for  what  amount  will  the  bill  be  drawn,  to  cost  that  sum — exchange  at 
"lo  premium? 

Rule.  Multiply  the  sum  to  be  invested  by  100,  and  divide  by  100 
with  the  premium,  annexing  two  ciphers  to  obtain  cents ;  or,  divide  by 
the  amount  which  you  give  for  $1. 

100     $5000 
9  100 

109   )  500000  ($4,587.15  ^jw.  in  dollars  and  cents. 


212 


MERCANTILE '  CALCULATIONS. 


Now  change  the  $4,587.15  to  sterling :  Multiply  by  9  and  divide  by  40. 

$4587.15 
9 

40)41284.35 

c£  1032, 11       Pounds  and  hundredtns. 
20 

«.       2,20     Shillings  and  hundredths. 
12 

d.      2,40     Pence  and  hundredths. 

Example  7. 

Imported  invoice  of  goods  from  Havre,  amounting  to  12,750  francs; 
for  what  amount  shall  I  credit  the  shipper  in  dollars  and  cents  ? 

Rule.  Multiply  the  francs  by  the  par  value  of  a  franc — 18}  cents. 

Fr.  12,750 
18f 

102000  Fr.  12,750 

12750  3 


^1032 ..2. .2.  Ant. 


2295.00 
76.50 

$2,371.50  Ans. 


5)38250 
76.50 


Example  8. 

Bought  a  bill  of  exchange  on  Havre  for  the  amount  of  the  above  in- 
TOice  (12,750  francs),  exchange  at  fr.  5.30 ;  what  shall  I  pay  for  the  bill, 
in  dollars  and  cents  t  r  j  * 

Rule.  Divide  the  amount  of  the  bill  by  the  number  of  francs  and 
hundredths  allowed  for  $1,  annexing  ciphers  to  obtain  cents. 

5.30  )  12,750.00,00  ( $2,405.66  Am, 

Note.— It  will  be  seen,  by  comparing  this  with  the  precedinir  ques- 
tion, that  when  the  exchange  on  France  is  at  fr.  5.30,  it  is  at  a  premium  • 

12,750  francs,  at  fr.  5.30,  make  $2,405  66 

12,750       "       atpar(18f)    "       2,371  50 

Loss  by  exchange 34~T6 

Example  9. 

Bought  a  bill  of  exchange  on  Paris,  drawn  for  14,062.73  francs— ex 
change  at  fr.  5.32  per  dollar ;  what  will  it  cost  ? 

(Pro«  tnniMtion  of  April  3a) 

Rule  Dmde  the  amount  of  the  bill  by  the  amount  of  French  money 
allowed  for  $1,  which,  in  this  question,  is  SJ^J^r  fr. 

5.32 )  14,062.73.00  ( $2,643.58  Am. 


.. 


MERCANTILE  CALCULATIONS.  *  213 

i 
Example  10. 
I  wish  to  invest  $4,987.50  in  a  bill  of  exchange  on  Havana— exchanffe 
at  H  per  cent,  discount ;  what  amount  will  the  bill  be  drawn  for,  allow- 
ing me  ^  per  cent,  commission  for  buying  the  bill  ? 

(From  transaction  of  April  30.) 

INSTRUCTION.  Divide  the  amount  to  be  invested  by  the  number  of 
cents  allowed  for  $1  (98J  cts.  are  allowed  for  a  dollar).  If  the  exchange 
be  1^    1^,  discount,  for  every  98^  cents  we  get  a  dollar  in  the  bill. 

±5ut  as  we  charge  i  per  ct.  commission,  we  add  that  to  the  98^,  which 
makes  the  divisor  98|.  ^ 

.98.75 )  4,987.50,00,00  ( $5,050.63 

The  bill  will  be  drawn  for $5,050  63— which, 

At  1^  per  cent,  discount 75  75 

Wllcost....... 4,974  88 

Add  our  commission,  at  -J.  o|^ 12  62 

Making  the  sum  we  wished  to  invest 4,987  50 


EQUATION  OF  PAYMENTS, 

Equation  of  payments,  or  averaging,  is  a  calculation  to  ascertain  at 
what  date  several  sums,  due  at  different  dates,  maybe  paid  in  one  payment, 
so  that  neither  payer  nor  receiver  may  gain  or  lose  in  time  or  interest 

An  equation  of  payments  is  proved  by  a  calculation  of  interest;  for 
the  interest  on  the  sums  due  before  the  average  date,  should  equal  the 
interest  on  the  sums  due  after.  »        u  u  equai  cne 

«f  L^P^J^'lT'l^  examples,  it  is  believed,  embrace  all  the  different  cases 
of  averaging— beginning  with  the  simplest. 

Example  1. 
Sold  merchandise  to  Mr.  Austin  as  follows ;  when  is  the  amount  due  I 

xyr       /?   1.-11    /.  -^^*-  May  21. 

May6,billof $50  00 

"  »  "  75  00 

"  15  '  80  00 

"  27  «  120  00 

"  30  "  150  00        • 

.A"^"^^  \  ^a  ^""^  ^T^  average  date  of  the  preceding  hiWa -^  Multiply 
ea^  sum  by  the  number  of  days  from  its  date  to  tU  date  If  the  1st 
•wn^^nd^ivide  the  amount  of  the  products  by  the  amount  of  the  sums. 

$50  X   0  =    0 

75  X  3  =  225 

80  X  9  =  720 

120  X  21  =  2520 

150  X  24  =  3600 

475     ^    )7065(15  days  after  May  6. 


214  MERCANTILE  CALCULATIONS. 

If  these  sales  to  Mr.  Austin  were  at  6  or  4  months*  credit,  the  4  months* 
credit  on  the  total  would  begin  at  May  21. 

Example  2. 

Sold  merchandise  to  Mr.  Harris  as  follows ;  when  is  the  total  due  f 

Calculation. 
May  10,  bill  of $40  00    x     0  =         0 

"15  "  65  38  X  5  =     325 

"     27  "  90  50  X  17  =1,530 

"     30  "  120  40  X  20  =  2,400 

June   6  "  50  20  X  26  =  1,300 

"     20  "  110  90  X  40  ==4,400 

"     25  "  148  00  X  45  =6,660 

$625  38         625 )  16,615  ( 26  ds.  after 
May  10. 

The  total  falls  due  June  6,  that  being  26  days  after  May  10.  But  if 
there  had  been  a  credit  of  ^  or  &  months  on  these  hills  of  goods,  then  the 
credit  would  begin  on  June  6,  and  the  amount  be  due  4  or  6  months  after 
that  date. 

Example  3. 

Sold  merchandise  to  Mr.  Sims  on  the  following  dates  and  credits; 
when  will  the  amount  be  due  ? 

Calculation. 

July    1,  bill  at  3  months,  $400    x      94   =  37,600 

"       5       "      4       "  500    X    128  =  64,000 

"  10   "   4   "     500  X  133  =  66,500 

"  20   "   6   "    1500  X  203  =304,500 

Aug.  10       "      3       "  200    X    133  =  26,600 

"     20       "    60  days,         100    x    113   =   11,300 

Sept.  15       "    90       "  250    x    168  =  42,000 

3450         -^         552,500  ( 160  ds.  after 
==  ==      July  1. 

This  case  differs  materially  from  Examples  1  and  2,  because  the 
sales  are  on  different  terms — one  being  at  4  months,  another  at  3 
months,  &c. 

Rule.  Multiply  each  sum  by  the  number  of  days  that  it  will  be  due, 
counting  from  July  1  (the  date  of  the  first  sum),  and  divide  by  the 
amount  of  the  original  sums ;  the  quotient  will  be  the  number  of  days 
after  July  1,  that  the  amount  will  be  due.  The  multiplier  (128)  in  the 
above  calculation  is  obtained  thus : — 

From  July  1  to  the  5th  call 5  days. 

4  months  call 120     " 

Grace  call 3     " 

128  days  from  July  1, 
Utat  the  $500  has  to  run  before  due. 


<  MERCANTILE  CALCULATIONS.  215 

Example  4. 

Calculation  of  averaging  the  account-sales  rendered  to  Mr.  Harris, 
March  30,  copied  from  page  189  : — 

Terms.  Calculation. 

March  23 cash,       $3,000  x  0  = 

"       26 60  days,   2,400  X  66  =  158.400 

"       27 60  days,       500  X  67  =  33.500 

"       27 cash,            700  X  4  =  2.800 

"       28 3  mos.,     1,250  X  98  =  122.500 

7,850  ~" 

Less  chai-ges 235 

Divide  by  net  proceeds  .    7,615       -^         )  317.200  (41  days  af- 
ter  March  23 — equal  to  May  3. 

Rule.  Multiply  each  sum  by  the  number  of  days  that  it  wants  of  be- 
mg  due,  countmg  from  the  first  date  (March  23),  and  divide  by  the  net 
proceeds ;  the  quotient  will  be  the  number  of  days  that  the  proceeds 
will  fall  due  after  the  date  averaged  from— March  23. 

Example  5. 

Calculation  of  averaging  the  account-sales  rendered  to  Mr.  De  Nones 
-copied  on  page  188  : — 

Tebms.  Calculation. 

March  3 cash,  $  456    X      0  = 

"       4 60  days,       175   x   64  =  11.200 

"       4 cash,  300    X      1   =       .300 

"       9 90  days,       150    x   99   =   14.850 

"     10 cash,  1,233    X      7  =     8.631 

"     10 4  months,  2,000    xl30  =260.000 

4,314  ^ 

Less  charges 783 

Divide  by  net  proceeds  .  3,531       -^        )  294.931  (  84  days  af- 
ter March  3 — equal  to  May  25. 

,i.f^^^'  ^"^'^^P^y  ^ac^  8^™  by  the  number  of  days  from  the  first  date 
(March  3)  to  the  date  when  it  will  be  due,  and  divide  by  the  net  oro- 
ceeds;  the  quotient  will  be  the  number  of  days  after  the  first  date 
(March  3)  that  the  net  proceeds  will  be  due. 

Note.— Dividing  by  the  net  proceeds,  as  above,  extends  the  time  in 
proportion  to  the  charges  which  we  consider  due  March  3— the  date  we 
average  from.  But  supposing  the  charges  due  much  before  or  after 
that  date,  we  should  then  multiply  them  by  the  number  before  or  after, 
and  add  the  product  to,  or  deduct  it  from,  the  dividend  to  be  divided  by 
the  net  proceeds.  If  the  charges  were  due  before  the  date  we  average 
from  (March  3),  the  said  dividend  should  be  increased ;  if  after,  de- 
creased. 

If  we  divide  by  the  total  sales,  we  must  put  another  item  among  the 
Charges,  viz. :  interest  on  the  amount  of  the  charges  from  the  date  they 


216 


MERCANTILE  CALCULATIONS. 


average  due  up  to  the  time  the  total  sales  average  due ;  which  method 
is  not  truly  averaging  the  account,  but  averaging  a  part  of  it  and  char- 
ging interest  on  the  rest. 

Example  6. 


When  is  the  balance  of  the  following  account  due  t 
Dr.  John    Sims. 


Cr. 


1850. 

June 


To  amount  due  us  this 
date 


#700 


700 


00 


00 


1850. 

May 


By  amount  due  him  this 

date 

By  Balance  due  Aug.  17 


#500 
20Q 


700 


00 
00 

00 


Rule.  {Always  calculate  from  the  date  of  the  larger  side,  calling  that 
the  debt  and  the  other  side  the  payment  on  account  of  it.)  Multiply  the 
sum  of  the  smaller  side  by  the  number  of  days  that  intervene  between 
its  date  and  the  date  of  the  larger  side,  and  divide  by  the  bala^nce  of  the 
account ;  the  result  will  be  the  number  of  days  before  or  cfler  the  date 
of  the  larger  side,  that  the  balance  will  be  due. 

31      days  from  May  1  to  June  1. 
500  from  credit  side. 

Balance.  .200)  15,500(77  days  after  June  1 ;  equal  to  Aug.  17. 

For  the  reason  that  the  $500  was  paid  31  days  before  the  debt  was 
due  (June  1),  the  balance  (200)  does  not  become  due  until  77  days  after 
June  1.  Or  thus :  If  one  pays  $500,  31  days  before  it  is  due,  how  long 
ought  that  to  extend  his  credit  on  $200  ? 

Ans,  JJ^  of  31  days,  which  is  77  days. 

Example  7. 


When  is  the  balance  of  the  following  account  due  f 
Dr. 


Cr. 


1850. 

Jan. 
Feb. 
Mar. 
Apr. 


15 
20 
30 
20 


To  Merchandise,  at  6  mos. 
To         "  ate  « 

To         "  ate  " 

To         "  ate  " 


Amount  due  Sept.  2 


f500 
300 
400 
300 


1500 


00 
00 
00 
00 


00 


1850. 

Mar. 
Apr. 
June 


10 

30 

1 


By  Cash 

By  Cash 

By  Note  due  Aug.  1 

Amount  due  June  5 
Balance  due  Feb.VI  \ 


51 


#200 
300 
500 


1000 
500 


1500 


00 
00 
00 

00 
00 

00 


Average  each  side  of  the  account  separately  (as  shown  in  example  2), 
to  find  when  the  total  of  each  is  due;  the  account  will  then  be  in  situ 
ation  of  example  6. 


MERCANTILE  CALCULATIONS. 


217 


Rule.  Multiply  the  amount  of  the  smaller  side  by  the  number  of  days 
that  intervene  between  the  day  on  which  it  is  due  and  the  day  on  which 
the  larger  side  is  due,  and  divide  the  product  by  the  balance  of  the  ac- 
count ;  the  quotient  will  be  the  number  of  days  that  the  balance  will  be 
due  after  or  before  the  date  of  the  larger  side. 

89         days  from  June  5  to  Sept.  2. 
1,000  amount  of  credit  side. 


Balance . .  500 )  89,000  ( 178  days  after  Sept.  2 ;  equal  to  Feb.  27. 

The  amount  of  the  debtor  side  is  due  Sept.  2 ;  the  $1,000  on  the 
credit  side  was  paid  on  account  of  the  $1,500,  89  days  before  it  was  due; 
therefore  the  balance  of  $500  will  fall  diie  179  days  after  Sept.  2.  Or] 
if  $1,000  is  paid  89  days  before  the  debt  was  due,  how  long  ought  that 
to  extend  the  credit  on  the  $500  still  owing  ? 

^ns.  Lo^o  (or  LO)  of  89  days— equal  to  178  days. 

Example  8. 


When  is  the  balance  of  the  following  account  due  ? 
Dr.  Paul  Harris. 


Cr. 


1850. 

Jan. 
Mar. 

8 
20 

30 

To  Mdse.  due  March  12 . 
To  Cash 

#325 
2000 

4994 
7319 

00 
00 

87 
87 

1850. 

Jan. 
Mar. 

« 

22 
18 
21 
30 

By  Note  due  March  12 . 
Bv  Cash 

#325 
2000 
1187 

3807 

7319 

00 
00 
50 

37 

87 

Apr. 

Ana. 
To  Balance  due  Apl  22, 
1850 

By  Merchandise 

By   net    proceeds    due 
May  3 

Average,  separately,  both  sides  of  the  account,  in  manner  of  Exam- 
ple 5.  The  debtor  side  ($2,325)  will  be  due  March  19 ;  the  credit  side 
($7,319)  will  be  due  April  11.  Thus,  then,  we  owe  Mr.  Harris  $7,319, 
due  April  11 ;  on  which  we  have  paid  him  $2,325,  due  March  19 — ^leav 
ing  a  balance  in  his  favor  of  $4,994.  Now,  as  we  paid  him  $2,325 
23  days  before  what  we  owed  him  was  due,  it  follows  that  our  credit  on 
the  balance  should  be  extended  in  proportion  as  the  amount  paid  is  to 
the  balance  owed;  that  is — ffj|  of  23  days  after  April  11=  Apl.  22. 


PROFITS  AND  LOSSES. 

Example  1. 

Bought  an  article  for  $5,  and  sold  it  for  $6 ;  at  what  rate  per  cent, 
was  the  gain  ? 

Rule.  Multiply  the  gain  or  loss  by  100,  and  divide  the  product  by 
the  cost. 

28 


i 


^^®  MERCANTILE  CALCULATIONS. 

Gain $i 

100     • 

^°«* o)  100(20  per  cent.  Am. 

10 

0 

Example  2. 

Bought  50  chests  tea  for  $4,725,  and  sold  the  same  for  $4,866  75  •  at 
what  rate  per  cent,  was  the  gain  ?  ^  «*,ood./o  ,  at 

Sold  for $4,866.75 

Cost 4,725.00 

^ain 141.75 

100 

4,725.00)14175.00(3  per  cent.  gain.  Ant, 
Example  3. 

rnff^i%\  ^^  ™^^^]^^°^i««  *e  last  four  months  amount  to  $24,619:  the 
cost  $21,056 ;  what  per  cent,  is  the  profit  ?  ip«»iox»,  we 

Sales $24,619 

Cost 21,056 

C^ain 3,563 

100 

21,056)3563.00(16.92 

Ant,  Sixteen  and  ^^^  per  cent. 
Example  4. 

Sales  of  merchandise  this  year  amount  to  $55,660 :  suoDOsincr  tha 
profits  average  12  per  cent.,  how  much  is  the  gain  ?  '"PP^«*°^  ^^^ 

h^^lT  ^1!"^^'^  *^^  ^'^''''''^  ""^  ?'^'  ^y  100'  ^"d  ^^^o  the  product 
I-  2^"!."^  ^^^.""^^^  per  cent,  added;  the  quotient  will  be  the  cost 
Which  deducted  from  the  sales  will  give  the  gain. 

$55,660 

100     $55,660.00  sales. 
112)55,66000  (   49,696.43  cost. 

5,963.57  gain. 


TBI  BND. 


OFICINA  PARA  LA  PRACTICA 


DE  LA 


TENEDURIA  DE  LIBROS, 

ESCRITURA  Y  ARITMETICA  MERCANTIL, 
Broadway,  New  York. 

PoR  D"  C.  C.  MARSH,  Contador, 

Aotor  de  "La  Ciencia  de  Partida  Doble  Simplificada,"  y  "El  Arte  de  Fartida 

Simple  Mejorado.'* 


CURSO   DE   INSTRUCCION. 

Se  asegura  al  publico  que  el  sistema  que  el  S"  Marsh  observa  en  la  ense- 
fianza  de  este  importante  ramo  de  educacion,  es  realmente  un  curso  de  Uevar 
libros  practicamente,  mas  beia  que  discursos  sobre  la  teoria  de  esta  ciencia. 

Para  que  se  pueda  rendir  esta  ciencia  (itil  en  su  practica  se  requiere  una 
ensenanza  mas  estricta  y  un  conocimiento  mas  profundo  del  que  se  puede  par- 
»icipar  con  discursos  6  per  el  metodo  de  ensefianza  correlativo  en  las  escuelas, 
I  saber,  escribir  6  copiar  en  dos  6  tres  libros. 

El  S"  Marsh  ensena  de  una  manera  solida  y  mui  ejercitada  todos  aquellos 
puntos  que  tocan  a  un  juego  de  libros  pertenecientes  a  una  sociedad  mercantil ; 
es  decir,  Principiarlos,  Llevarlos,  y  CerrarJos  6  Concluirlos,  hacer  Balances  de 
Prueba,  Balances  Generales,  Cuentas  Corrientes,  Cuentas  de  Ventas,  y  Calcu- 
los  de  Intereses,  Descuentos,  Ganancias,  Perdidas,  Promedio  de  Pagos,  Cam- 
0108,  Monedas,  &<=.  je  modo  que  el  discipulo  llega  a  familiaxizarse  con'  todos 
los  Libros  que  constituyen  un  juego  completo ;  y  si  es  persona  de  buenas  luces 
naturales,  en  el  curso  de  un  mes  podra  hacerse  un  tenedor  de  libros  competente 
y  recibira  un  certificado  al  efecto. 


RMINOS. 

A  ningun  discipulo  se  le  ensefiara  en  clase  pues  todos  recibiran  instruccion 
privada. 

Ciencia  de  Partida  Doble  :  un  curso  completo  de  practica  |P»gadero8  adeiantados 

$25  00 

2  00— $27  00 


e  instruccion,  incluso  la  ensefianza  de  calculos  mercantiles 
Por  libros,  papel,  plumas,  &«•  para  el  curso 

Arte  de  Partida  Simple:  un  curso  completo  de  instruccion 
Por  libros,  papel,  plumas,  &<=•  para  el  curso 

Arte  de  Escribir:  un  curso  de  lecciones  bien  calculado 
para  darle  al  discipulo  una  letra  mercantil  y  arrogante    . 
Por  papel,  plumas,  &c-  para  el  curso    .    • 


$10  00 

2  00— $12  00 


$10  00 

50— $10  50 


[tj/*  No  course  of  Instruction,  it  is  confidently  believed  by  all  who  have  pur 
sued  it,  has  ever  been  devised,  so  well  calculated  to  give  a 

PRACTICAL  KNOWLEDGE  OF   BOOK-KEEPING, 

as  the  one  now  offered  to  the  public,  and  which  the  advertiser  has  taught  for 
15  years  in  the  city  of  New  Yorkj  with  the  greatest  success  and  approbation. 


COUNTING-ROOMS 

FOR  THE 

PRACTICE  OF  BOOK-KEEPING, 

MERCANTILK  WRITING  AND  C{)MMt:RCIAL  ARITHMETIC. 

Broadi^ay,  New  York. 

By  C.  C.  marsh,  Accountant, 

Author  of  "  Thk  Sciksck  of  Doublk-Entrt  Book-Keepiko  Simplified."  and  "  Thk  Art 
OF  Single-Entry  Book-Keepino  Improved,"  etc. 


COURSE  OF   INSTRUCTION. 

The  public  is  respectfully  informed  and  assured,  that  the  plan  pursued  by 
Mr.  Marsh,  in  teaching  this  important  branch,  is  truly  a  course  of  practice 
W  KEEPING  BOOKS,  rather  than  a  course  of  lectures  on  the  theory. 

To  be  practically  useful,  a  more  exact  and  particular  knowledge  of  Book- 
Keeping  is  required  than  can  possibly  be  imparted  by  mere  lectures,  or  by  the 
3ommon  method  of  teaching  it  in  schools — viz.  writmg  out  or  copying  in  two 
or  three  books. 

In  this  establishment  the  pupil  is  faithfully  instructed  and  well-exercised  in 
all  the  various  operations  connected  with  a  set  of  Partnership  Books  ;  in 
Opening,  Conducting,  and  Closing  the  same ;  in  making  out  Trial-balances, 
Balance-sheets,  Accounts-current,  Account-sales ;  and  in  calculating  Interest, 
Discount,  Profits,  Losses,  Equation  of  Payments,  Exchanges,  Currencies,  &c. 
He  becomes  familiar,  from  actual  use,  with  all  the  books  constituting  a  set ; 
and  a  person  of  good  capacity,  will  by  this  course  become  a  competent  book- 
keeper in  about  one  month,  and  will  receive  a  certificate  to  that  effect. 


ERMS. 


No  person  is  taught  in  a  class — every  pupil  has  a  desk  to  himself,  and  re- 
ceives private  or  separate  attention  and  instruction. 

Double-Entry   Book-Keeping,  for  a  complete 

course  of  Practice  and  Instruction,  including  Mer- 
cantile Calculations,  &c.,  &c.,  time  not  limited. . . 
Books  and  Stationeiy  for  the  course 


Single-Entry  Book-Keeping,  complete  courae  of 

Instruction,  time  not  limited 

Books  and  Stationery  for  the  coui-se 

Mercantile  Writing,  for  a  course  of  lessons  well 

calculated  to  make  a  good  penman,  time  not  limited 

Stationery  for  the  course 


Payable  in  Advance. 
$25  00 

2  00-1-827  00 


$10  00 

2  00— $12  00 


$10  00 

50— $10  50 


4 


II 


jt.  ^ 


tl 


.11 


rr. 


Jtl 


i 


11  ^^ T_ 

ni 


n. 


COLUMBIA  UNIVERSITY  LIBRARIES 

This  book  is  due  on  the  date  indicated  below,  or  at  the 
expiration  of  a  definite  period  after  the  date  of  borrowing,  as 
provided  by  the  library  rules  or  by  special  arrangement  with 
the  Librarian  in  charge.                                                              1 

DATE  BORROWED 

DATE   DUE 

i 

DATE  BORROWED 

DATE  DUE 

AUG  4    IS'' 

'^k 

t       '    ^ 

i 

1 

C28(842)M50 

y 


fa 


Cr     . 


4i- 


i^617 


Marsh,    C.    C. 

B^arsh's   course   of  book  kee 


ping 


.vC^ 


'p4'^^ 


/fsJ'j'i 


/115H 


0OlU\r 


NEH 


MAR  161991 


, 


COLUMBIA  UNIVERSITY 


0032054874 


MAK  5-    1946 


•  ff  Jl> 


^ 


iv: 


w 


*t»IIHPr 


END  OF 
TITLE 


